How invest
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?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 this information?
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.
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.
In the case of liquid investments, such as equities, bonds and commodities, the administrative organisation makes these investments closely in line with the relevant benchmark. The emphasis is on limiting costs.
In the case of illiquid investments, such as infrastructure, private equity, hedge funds and private real estate, it is not possible to invest in accordance with a benchmark. For these investment categories, the selection of specific investments or specific asset managers is the most important factor.
What is the result?
Portfolio management results in an investment portfolio in accordance with the strategic benchmark, with a wide diversification across equities, bonds and many other asset categories. The list of investments shown in ‘Which investments’ details all the pension fund’s investments.