Key figures
* This is determined on the basis of the interest rate term structure published by DNB. This is determined by the swap rates, with an Ultimate Forward Rate (UFR) from 2020.
Fund/mandate | Market value (€ x 1 million) | Return | P/L (€ x 1 million) |
---|---|---|---|
PFZW Interest rate hedging mandate | €68,405 | 22.3% | €13,368 |
PGGM Developed Markets Equity Fund | €32,144 | 30.4% | €7,325 |
PGGM Private Real Estate Fund | €14,604 | 11.4% | €1,512 |
PGGM Listed Real Estate Fund | €14,555 | 24.8% | €2,961 |
PGGM Developed Markets Alt Equity II Fund | €14,111 | 26.6% | €1,832 |
PFZW Private Equity | €13,960 | 20.5% | €2,433 |
PGGM Developed Markets Alt Equity Fund | €12,628 | 27.3% | €3,927 |
PGGM Emerging Markets Debt Local Currency Fund | €11,041 | 15.3% | €1,582 |
PGGM Emerging Markets Equity Fund | €10,213 | 21.7% | €1,723 |
PGGM Infrastructure Fund | €9,397 | 9.9% | €815 |
PGGM Commodity Fund | €8,670 | 26.0% | €2,023 |
Subtotal | €209,726 | €39,501 |
- * In the category marketable securities, it was mainly the public equities funds that contributed to the high return on portfolio level.
Private markets
Despite the growing competition, most private market funds managed to make the desired investments in 2019. The market for infrastructure has become extremely competitive, which has made it a challenge to realise the desired allocation. Since no concessions are made on price or control, a number of transactions were not successfully concluded. Most conspicuously the sale of Eneco, for which PGGM made a bid together with partner Koninklijke Shell, but which was ultimately acquired by a Japanese consortium. Read more about our bid on Eneco
Public markets
In public markets, clients’ investment plans are implemented in accordance with the assignment. In an exceptional year of falling interest rates, extremely high returns and sometimes low liquidity, it was a challenge to keep up with the benchmark after costs. This was the case especially for those funds for which the investment target included a strong focus on quality and lower volatility than the benchmark. It is therefore satisfying that at the end of 2019, almost 60% of the funds managed within the public markets department since their start are still generating a return after costs equal to or in excess of the benchmark. Significant progress was also made in 2019 on sustainability in the funds and mandates, whereby the carbon footprint was further reduced and impact investments were further increased. Finally, a new investment team took up management of part of the allocation to Emerging Market Debt.
Allocation of assets under management
PGGM – Assets by type of investment | |
---|---|
31.12.2019 | In billions of € |
Public markets | |
Listed equity | 88.1 |
Government bonds | 66.2 |
Corporate bonds | 14.4 |
Private markets | |
Private real estate | 15.4 |
Private equity | 14.1 |
Infrastructure | 10.3 |
Mortgages | 2.8 |
Derivative markets | |
Swaps | 22.2 |
Commodities futures | 8.7 |
Insurance | 5.8 |
Credit Risk Sharing | 5.7 |
Cash and other | |
Phase-out categories | 0.8 |
Cash | -2.1 |
Total | 252.3 |
PGGM – Assets by client | |
---|---|
31.12.2019 | In billions of € |
PFZW | 238.4 |
BPF Schilders | 8.2 |
PF Architecten | 3.0 |
SPH | 1.1 |
Smurfit Kappa Pf | 0.8 |
BPF Beveiliging | 0.5 |
APF Volo | 0.4 |
Total | 252.3 |