NETHERLANDS - The e71.5bn PGGM pension fund for Dutch social and healthcare workers is undertaking a radical overhaul of its investment management structure, abandoning conventional investment organisation based on asset classes.
Under the shake-up, PGGM will appoint Leo Lueb, director of equities since November last year, as its new chief investment officer (CIO). In addition, the fund will “explicitly separate as well as manage” market risk, and the active investment policy.
As well as taking responsibility for the overall investment policy of the portfolio, Lueb will also be responsible for the department which directs the portfolio of strategies, private equity and long-term strategies.
Piet Roelandt, currently director of fixed income, treasury and commodities, will also be appointed as director of portfolio management, responsible for all liquid investments managed actively and passively, including equities, fixed income and commodities.
Roelandt commented: “The new opportunities that arise by integrating management of the different investment products in combination with specific derivatives strategies, will enable us to further improve the returns and keep the costs low’.
An investment committee will manage the risk position of the overall investment portfolio, with members including Lueb, Roelandt, Else Bos, (chief executive officer of investments and executive director), Henk Porte, (acting director of structured investments), and Jaap van Dam, chief strategist since December 2005.
PGGM said the management changes reflect its revised approach to investment management, focusing on the fundamental risk factors in the financial markets.
Bos added: “As an institutional investor we seize all opportunities to continually improve the investment process on the basis of our investment beliefs and to apply innovative investment strategies. Integral management of the risk profile of the portfolio is crucial. An investment organisation consistent with this vision is an obvious next step.”
Hans Schlukebir leaves the fund in March after two years as head of fixed income, for a new role at Holland Capital Management.
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