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• 09:00 – 10:00: The Dutch Pension system
Herman Wijffels
• 10:00 – 11:00: Shell Pension fund
Willem Handels
• 11:00 – 12:00: An introduction to APG
Jeroen van Gelderen
• 12:00 – 13:00: Lunch
Agenda
An introduction to APGOwned by pension funds, for pension funds
Jeroen van Gelderen
Amsterdam
May 19, 2010
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In the Netherlands, pension services are in most cases outsourced to professional
financial institutions, pension delivery organisions (PDOs).
Asset management and investment services ALM Investment advisory services Asset management Risk management Reporting Custody services Treasury
Pension administration Support to the Board of Trustees Advisory services Reporting and annual report Collection of contributions Pay-out phase Administration Communication
Pension Delivery Organisations (PDOs)
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Dutch pension service providers
Source: Annual Accounts Source: Annual Accounts
Pension providers - Assets Under Management (2008)
0 50 100 150 200 250
Aegon (incl. TKP Pensioen)
Aon
Blue Sky Group
Delta Lloyd
Hewitt
ING (AZL & Nationale Nederlanden)
SAMCo
SPF
Fortis/ASR
Mn Services
PGGM
Syntrus Achmea
APG
Assets (€bln)
Company
Industry
Professional
Other
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Dutch pension service providers
Source: Annual Accounts Source: Annual Accounts
Pension providers - Participants (2008)
0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000
Aegon (incl. TKP Pensioen)
Aon
Blue Sky Group
Delta Lloyd
Hewitt
ING (AZL & Nationale Nederlanden)
SAMCo
SPF
Fortis/ASR
Mn Services
PGGM
Syntrus Achmea
APG
Participants (x 1000)
Company
Industry
Professional
Other
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Profile of APG
• Established in 2008, but with a long tradition and experience in managing pensions
• Result of a merger of APG and Cordares• Servicing, among others, the pension fund for the public sector, the
building sector, housing and the cleaning industry• Assets under management amount to more than EUR 230 bn• Servicing 20,000 employers and more than 4 mln plan members• Owned by pension funds• No profit maximisation• Offering a full range of pension services
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Strategy of APG
Clients
Products / services
Business Enhancing the Dutch collective pension system (2nd pillar) by offering high quality at a reasonable price
Enhancing the Dutch collective pension system (2nd pillar) by offering high quality at a reasonable price
Focused approach, in order to quarantee high level of quality
Focused approach, in order to quarantee high level of quality
Integrated approach, but always fitting fund-specific requirements and demands
Integrated approach, but always fitting fund-specific requirements and demands
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Integrated approach towards pension services
Board of Trustees
Assets Liabilities
• ALM• Advisory services• Pension fund asset management
– Targeted at fund objectives
– Long term perspective
• Reporting• Custody
• Collection of contributions
• Administration
• Communication
• Payments
• Reporting
• All fund specific
• General support • Risk management
• Advisory services
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Asset management
‘Portfolio optimization platform’• Allocatie and overlay• Treasury and trading• Strategy and research
‘Income Portfolio’
1. Treasuries
2. Index Linked Bonds
3. Credits
4. Cash
5. Infrastructure
6. Absolute Return Strategies
7. Liability Hedging Alternatives
‘Growth Portfolio’
1. Developed equities
2. Emerging equities
3. Private equity
4. Real Estate
5. Commodities
6. Return Optimizing Strategies
7. Innovations
Characteristics asset management
• Two basis portfolios aimed at specific risk/return profile
• Focus on pension specific asset management
– Alignment fund and asset manager
– Focus on implementation and innovation
– ESG
Advantages for pension funds
• Alignment with overall objectives of the fund
• Innovative & socially responsible
• Long term, pension related focus
• Access to alternative asset classes
• Low costs
Asset Management
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Pension administration
Characteristics• Account management is key
– Strong link with social partners
• Expertise with respect to legal and financial pension issues
– Strong presence in “The Hague” and “Brussels”
• Expertise and experience with pension fund communication
• Effective and efficient collection of pension fund contributions
• Overall approach to income-substituting old-age benefits
Benefits for pension funds• High quality at a reasonable price• “Best in class” advise• Fund-specific approach• “Fiduciary” approach with respect
to servicing employers and plan members
• Transparant communication to plan members
• Operational excellence• If desired, more than only pension
services in relation to old-age benefits
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APG, all round pension provider
APG Group
‘Shared services’‘Shared services’
‘Shared framework’‘Shared framework’
Asset management
Asset management
Pension admini-stration
‘Cordares’
Pension admini-stration
‘Cordares’
Pension admini- stration‘APG’
Pension admini- stration‘APG’
Supple- mentary products‘Loyalis’
Supple- mentary products‘Loyalis’
• IT-supply
• Procurement
• Facilities
• Payments & receivables
Bundling pension-expertise and -control• Pension policy/advisory
services• Financial control• Risk management
APG Group
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Contact details
Jeroen van Gelderen
Senior Actuary Consultant [email protected] +31 20 583 35 86
Ruben Laros
Junior Business Developer [email protected] +31 20 604 92 14