Pensioenfonds Zorg en Welzijn aims to provide its participants with a high-quality pension in return for an acceptable contribution.
In order to achieve this, the pension fund invests its assets. But how? And what steps does Pensioenfonds Zorg en Welzijn take in order to turn those assets into investments?
Step 1: Asset & Liability Management (ALM)
In this first step, the board determines the main features of the investment policy. The board specifies the permissible investment risk and the target return.
To do so, it needs information. What or who provides the board with this information?
Step 2: Investment strategy
The investment policy is developed further in this second step. The aim of Pensioenfonds Zorg en Welzijn's investment strategy is to create an investment mix which can be expected to generate a higher return and has a lower risk than the results of the ALM study in step 1.
But how? The pension fund applies three key principles.
Step 3: Porfolio management
In this third step, the administrative organisation actually invests the pension fund’s assets. The strategic benchmark from step 2 forms the starting point.
Read more about portfolio management.