Stichting Pensioenfonds PGGM, Zeist, Netherlands, announced a reorganization of its in-house investment team to focus on fundamental risk factors rather than asset classes. There's "no immediate effect" on current asset allocations or external money managers running portfolios for the €71 billion ($84 billion) pension fund, said Ellen Habermehl, PGGM's senior communication adviser. About 50% of assets are managed internally, she added. Overall, about 90% of the portfolio is actively managed.
The team has been divided into fixed-income, equities and structured investments (alternative assets) departments, each with its own directors. In the next few months, PGGM will move to a two-pronged approach of liquid and illiquid investments. PGGM officials wanted to achieve high stable returns by improving management of market risks, better integrating the investment process and increasing economies of scale.
"We will now look more closely at the way we want to obtain our investment returns," Ms. Habermehl said. "Because of the new structure, we've had to adjust (management-level) functions."
Leo Lueb, currently director of equities, will be appointed CIO responsible for the overall investment policy; he also will oversee illiquid investments, including private equity and long-term strategies.
Piet Roelandt — currently director of fixed income, treasury and commodities — will become director of portfolio management responsible for liquid investments, which includes active and passive equities, fixed income and commodities.
Other investment committee members will include: Else Bos, chief executive of investments; Jaap van Dam, chief strategist; and Henk Porte, acting director of structured investments.