Spring 2017 Issue
NEW SOLUTIONS FOR ONE OF THE WORLD’S BEST RETIREMENT SYSTEMS TKP Investments has also been one of the first to explore and exploit the new opportunities becoming available as an era of consolidation sweeps the pension fund sector in The Netherlands – a universe worth in excess of a trillion euros. According to the 2016 Mercer Global Pension Index, The Netherlands have the second best retirement system in terms of adequacy, sustainability and integrity. Together with Denmark, The Netherlands are the only country to hold an enviable A grade status. The pension fund sector’s consolidation may largely be ascribed to legal changes to pension fund law and a collective exercise in cost containment. This results in considerably fewer but larger pension funds with increasing responsibilities and demands. OVERWHELMING INTEREST IN THE FIRST GENERAL PENSION FUND OF THE NETHERLANDS TKP Investments has been at the forefront of these developments and facilitated the first licence to manage a pension fund under the new legislative framework. In mid-2016, the formation of Stichting Algemeen Pensioenfonds (APF) – better known as Stap APF – was announced, which proved to be the first general pension fund in The Netherlands. This new long term investment vehicle provides a solution for pension funds that no longer wish to continue independently due to stringent statutory requirements and high costs. Mrs Van Wijk: “Interest in the newly structured general pension funds has been overwhelming, with Stap APF being a step ahead of the competition thanks to the excellent reputation enjoyed by all parties involved. At TKP Investments, we are proud to be entrusted with the fiduciary management of Stap APF.
of the multimanager approach. Mrs Van Wijk: “Our investment teams select the best-inclass asset managers worldwide. This allows us to easily adjust in order to meet customer preferences and market opportunities across the entire universe of asset classes, increasing the chance of achieving higher than average returns at a sustainable level. At the same time, we offer our clients economies of scale that reduce overhead expenses. To further meet our customers’ needs, we continue to develop new and interesting multimanager investment funds. Furthermore, being part of Aegon Asset Management gives us the opportunity to harness the investment expertise of our colleagues around the globe.”
SHARING OUR EXPERTISE ON LIFE CYCLE INVESTING TKP Investments is also very pleased with its involvement in PPI Cappital, another pioneering solution in the Dutch pension fund market. A premium pension institution (PPI) is a form of collective defined contribution schemes for multiple employers. The introduction of the PPI vehicle is a natural response to the increasing popularity of defined contribution schemes. As fiduciary manager of PPI Cappital, TKP Investments advises on the design of life cycles and offers suitable investment solutions. Apart from our contribution to PPI Cappital, we are currently exploring promising opportunities to distribute our expertise on life cycle investment strategies abroad, including Germany and Spain, using a range of UCITS funds.” LEADING ROLE IN SUSTAINABILITY Sustainability is another area in which TKP Investments is taking a leading role. With increasing societal demand for sustainability CFI.co | Capital Finance International
and responsibility, the financial sector is being called on to contribute to a better planet too. TKP Investments teamed up with the prestigious Investment Leaders Group (ILG) facilitated by the Cambridge Institute for Sustainability Leadership. The ILG is a global network of pension funds, insurers, and asset managers committed to advancing the practice of responsible investment. Mrs Van Wijk explains: “At TKP Investments, we believe in a sustainable approach to all our investment solutions. We are pleased to see that an increasing number of customers and markets are seeking investment solutions which not only support their investment goals but also focus on environmental, social, and governance (ESG) issues. Two of our new funds – one focusing on active Long Term Investing (LTI) and one on passive Socially Responsible Investing (SRI) – offer an above average focus on sustainability criteria. In the long run, we believe that by combining sound investment decisions with ESG responsibilities, we can offer our customers and markets above average returns with a positive ESG impact.” CHARITABLE INSTITUTIONS ENTERING SOCIALLY RESPONSIBLE INVESTING FUNDS With these sustainable investment funds, TKP Investments has created not just a new and innovative offering but also a means of entering new markets, such as that of charitable institutions. With leading, well respected Dutch charity fund Prins Bernhard Cultuurfonds, TKP Investments already has a launching customer for the Socially Responsible Investing Fund. Mrs Van Wijk welcomes the new opportunities these institutions have to offer: “Charitable institutions are proving to be very similar to pension funds in terms of long term investments and sustainable investment horizons, and offer exciting new opportunities for long term partnerships. Not only are the investment goals of these organisations a good match with our own views, we are also very proud to be able to make a difference for their financial future and continuity. We are convinced that more charitable institutions will discover the benefits of our customer centric and sustainable approach and our thorough knowledge of investment processes.” PROUD SPONSOR OF A PARALYMPIC CHAMPION Last but not least, TKP Investments takes responsibility in other societal areas as well. “We are equally proud of our long term sponsorship of blind tandem cyclist Tristan Bangma, who won a gold medal in the Paralympics in Rio. We believe Tristan is a true role model of perseverance and financial independence: his visual disability didn’t stop him from achieving his goals in life.” i 67