The document discusses the future of the Dutch pension system and premium pension institutions (PPIs) in particular. It argues that defined contribution plans have a strong future given demographic trends. It presents PPIs as the best vehicle for defined contribution plans, noting their low costs, growth, and ability to act in participants' interests. While myths about defined contribution persist, the document asserts that PPIs can further improve by focusing more on participant needs over provider interests through innovations like "doorbeleggen," which allows investing throughout retirement.
Ambitious entrepreneurs need stimulating ecosystems. Dutch partners in regional economics (Ministry of Economic Affairs, Economic Board Utrecht, Utrecht University) now explore the Dutch entrepreneurial ecosystem. In that system venture capital of course is vital for ambitious entrepreneurs. Don Ginsel (Capital Waters) explains the Dutch situation.
Ambitious entrepreneurs need stimulating ecosystems. Dutch partners in regional economics (Ministry of Economic Affairs, Economic Board Utrecht, Utrecht University) now explore the Dutch entrepreneurial ecosystem. In that system venture capital of course is vital for ambitious entrepreneurs. Don Ginsel (Capital Waters) explains the Dutch situation.
An emerging consensus
A consensus is developing around
these principles about what
ESG is, and the Global Reporting
Initiative’s guidelines further
formalise the process. Yet actual ESG
implementation and measurement
are far from uniform. Its subjective
nature leads to management issues,
with widespread outsourcing of stockfiltering
and ongoing monitoring.
Many asset owners are signing up
to existing ESG standards. US$59trn
in global assets are now covered by
the United Nation’s six Principles for
Responsible Investment (UNPRI).
There is some consultation beginning
around compliance, with the
potential to remove signatories that
have shown no practice change or
improvement outcomes with regard
to the UNPRI.
The world’s leading pension funds, superannuation funds and insurance companies are rethinking their strategies in order to help meet their long-term commitments, according to a report by BNP Paribas Securities Services and the Economist Intelligence Unit.
Need to know more about private equity and hedge funds? Then you have come to the right place with this quick overview presentation. This is based on my book: "Figuring Out Wall Street". A part of a continuing series of on the financial services industry. We provide training, custom developed to your needs. Contact us to discuss your needs and get a quote.
Fuchs & Associes - LPEA: "Private Equity, the Long Term Investor Journey"Rajaa Mekouar
Initiated by Rajaa Mekouar, of Fuchs & Associés, this event aims to provide a unique insight into Private Equity as a viable investment alternative for private investors. At a time of volatile markets and rising macro uncertainty we are witnessing the dislocation of the traditional allocation model of Fixed Income+ Equities mix. This brings about the advent of a new investment allocation paradigm where investors are pushed to explore new asset classes in the search for yield. In this context, Private Equity is gaining ground as a viable alternative that offers an attractive risk/return profile to the well-advised investor.
Organiser/Moderator: Rajaa Mekouar
Keynote speaker: Ian Prideaux, CIO, Grosvenor Estate
Surprise Guest: Yaron Valler, Partner, Target Global
Panelists:
Stephanie Delperdange, SOFINA
Matthias Ummenhofer, Mojo.Capital
Jerome Wittamer, Expon Capital
Impact Investing and Conservation EnterpriseThe Long Run
Francois Bernard, from Conservation Capital takes our members through the ins and outs of impact investment, providing insights on identifying relevant options, and giving us a reality check on the suitability of impact investment for conservation enterprises. He also highlighting how Conservation Capital conceived, developed and managed, alongside their partner NGOs, the first investment funds exclusively focused on conservation enterprise in Africa and in Europe, namely African Wildlife Capital and Rewilding Europe Capital.
An emerging consensus
A consensus is developing around
these principles about what
ESG is, and the Global Reporting
Initiative’s guidelines further
formalise the process. Yet actual ESG
implementation and measurement
are far from uniform. Its subjective
nature leads to management issues,
with widespread outsourcing of stockfiltering
and ongoing monitoring.
Many asset owners are signing up
to existing ESG standards. US$59trn
in global assets are now covered by
the United Nation’s six Principles for
Responsible Investment (UNPRI).
There is some consultation beginning
around compliance, with the
potential to remove signatories that
have shown no practice change or
improvement outcomes with regard
to the UNPRI.
The world’s leading pension funds, superannuation funds and insurance companies are rethinking their strategies in order to help meet their long-term commitments, according to a report by BNP Paribas Securities Services and the Economist Intelligence Unit.
Need to know more about private equity and hedge funds? Then you have come to the right place with this quick overview presentation. This is based on my book: "Figuring Out Wall Street". A part of a continuing series of on the financial services industry. We provide training, custom developed to your needs. Contact us to discuss your needs and get a quote.
Fuchs & Associes - LPEA: "Private Equity, the Long Term Investor Journey"Rajaa Mekouar
Initiated by Rajaa Mekouar, of Fuchs & Associés, this event aims to provide a unique insight into Private Equity as a viable investment alternative for private investors. At a time of volatile markets and rising macro uncertainty we are witnessing the dislocation of the traditional allocation model of Fixed Income+ Equities mix. This brings about the advent of a new investment allocation paradigm where investors are pushed to explore new asset classes in the search for yield. In this context, Private Equity is gaining ground as a viable alternative that offers an attractive risk/return profile to the well-advised investor.
Organiser/Moderator: Rajaa Mekouar
Keynote speaker: Ian Prideaux, CIO, Grosvenor Estate
Surprise Guest: Yaron Valler, Partner, Target Global
Panelists:
Stephanie Delperdange, SOFINA
Matthias Ummenhofer, Mojo.Capital
Jerome Wittamer, Expon Capital
Impact Investing and Conservation EnterpriseThe Long Run
Francois Bernard, from Conservation Capital takes our members through the ins and outs of impact investment, providing insights on identifying relevant options, and giving us a reality check on the suitability of impact investment for conservation enterprises. He also highlighting how Conservation Capital conceived, developed and managed, alongside their partner NGOs, the first investment funds exclusively focused on conservation enterprise in Africa and in Europe, namely African Wildlife Capital and Rewilding Europe Capital.
هذا العرض إهداء لكل من يعمل في القنوات الفضائية الإسلامية في مجال الخدمات التفاعلية حيث يطرح العرض مفاهيم جديدة لاستخدام الخدمة والتفاعل مع المشاهدين من خلالها لتحفيزهم على زيادة التواصل عبر شاشة القناة ولكن المهم ليس الفكرة المهم التنفيذ ومن أراد الاستزادة لمشاهدة الإعلان التلفزيوني المُنفذ لتوضيح الفكرة فأهلاً ومرحباً.
Fiscale wijzigingen voor auto's vanaf 1 januariAuto Verkopen
Welke fiscale wijzigingen gelden er voor auto's vanaf 1 januari 2014? Wij hebben het overzichtelijk voor je op een rijtje gezet. Lees het artikel op http://www.ikwilvanmijnautoaf.nl.
OECD, 7th Meeting on Public-Private Partnerships - Virginie GRANDOECD Governance
This presentation by Virginie GRAND was made at the 7th Meeting on Public-Private Partnerships held on 17-18 February 2014. Find more information at http://www.oecd.org/gov/budgeting/ppp.htm
Module 7 Wealthtech of the very popular fintech elective at the Queen Mary University London. The course was very popular, attracting over 200 Chinese and international students.
C.Y Actuaries Conference 2014: The Future of Asset Management in Cyprus and G...Stephan Cronje
The presentations from the Cronje & Yiannas Actuaries and Consultants Ltd conference held on 28 May 2014 at the Hilton Park Hotel in Nicosia, Cyprus. The title of the conference was "the Future of Asset Management in Cyprus and Greece."
Briefly, Cytonn is primarily focused on offering alternative investment solutions to institutional investors, individual high net-worth investors and diaspora investors interested in the East-African region.
On 4th December 2015 the Big Lottery Fund and CBO evaluation team ran a peer learning event for people developing SIBs related to employment, housing and crime. These slides are from the afternoon workshop on working with investors.
PréstamoVida es la única entidad especializada en otorgar préstamos sobre pólizas de seguros del mercado español.
Cuenta con el apoyo importante de Cofidis - www.cofidis.es - con 1,5 millones de clientes, 750 colaboradores y 20 años de experiencia en España.
Se dirige a clientes con una póliza de seguro de ahorro y de renta individual y que se enfrenten a una necesidad temporal de liquidez.
Más de 6 millones de clientes poseen una póliza de éstas características en España.
How can you develop your intelligence activities in the most efficient way, so decisions are never delayed? 45 % of companies say a lack of information delays decisions, according to the 2013 Global Market Intelligence Survey.
These slides are excerpts from the GIA Webinar: Essential Tips for Increasing Efficiency of Intelligence which showed participants:
- How to manage variables in your intelligence: scope, process, stakeholders, relevancy, priorities and culture
- How to disseminate and communicate intelligence finding in the best possible way
Similar to Tjb hulshoff i pension solutions kcm presentations 23 april 2015-v20150421th (20)
2. A standard, yet very different PPI
Kempen Capital Management seminar ‘Hollands Glorie’
De toekomst van ons pensioenstelsel: In search of the Holy Grail
April 23, 2015
24/04/2015
Private and Confidential
3. 3
And now for something completely
different...
• DC has the future
• ...as despite common myths..
• ...the underlying trend is unassailable
• PPI is the best vehicle
• ...supported by massive growth...
• ...and now breaking barriers....
• ...acting in the interest of participants
• Further improvement is on the way
• ...yet myths are tenacious...
• ... and participant interests should outweigh
providers’ interest.
4. 4
And now for something completely
different...
• DC has the future
• ...as despite common myths..
• ...the underlying trend is unassailable
• PPI is the best vehicle
• ...supported by massive growth...
• ...and now breaking barriers....
• ...acting in the interest of participants
• Further improvement is on the way
• ...yet myths are tenacious...
• ... and participant interests should outweigh
providers’ interest.
5. 5
1605
1st “pension”
State elderly
pension
1956
No more early
age retirement
2011 g
1st
fund
1970 -1990
Early
retirement
65 -> 67 72
DB to DC
1845
Final pay
avg. pay
2000 -2008
2004 2011 2011 g
PPI growth
2014
8. 8
...as despite common myths...
1. DC leads to unpredictable pension
2. DC does not contain collectivity and solidarity
3. DB has higher returns, because of
intergenerational solidarity
4. DC requires participant choices, and thus leads to
errors
5. DC is more expensive for it is often executed by
for-profit parties
9. 9
...the underlying trend is unassailable.
2040
0
1
2
3
4
5
6
7
8
9
1950196019701980199020002010202020302040205020602070208020902100
Number of workers per 65+
Bron: i-PensionSolutions, United Nations
11. 11
...the underlying trend is unassailable.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1999 2005 2010 2014
Number of participants in DC (Netherlands)
0
5
10
15
20
25
1999 2005 2010 2014
AUM(€bln)
AUM in DC (Netherlands)
12. 12
And now for something completely
different...
• DC has the future
• ...as despite common myths..
• ...the underlying trend is unassailable
• PPI is the best vehicle
• ...supported by massive growth...
• ...and now breaking barriers....
• ...acting in the interest of participants
• Further improvement is on the way
• ...yet myths are tenacious...
• ... and participant interests should outweigh
providers’ interest.
14. 14
PPI is the best vehicle (cost)
Source: LCP [2014] Source: LCP [2014]
Source: Towers Watson [2011 (!)]
15. 15
PPI is the best vehicle
• Proven concept
• Lowest cost
• Inherently innovative
• Participant focused
• VAT exempt
• Ringfencing
• Regulated in The Netherlands
• Suitable for:
• DC scheme
• Net pension
• CDC scheme
• Run-off portfolio
• Separated account
• Europe
• (self employed, currently excluded by law)
16. 16
...supported by massive growth
• Significant growth in AUM and premium
• Large corporations looking into PPI
• (political) perception has changed
€ 113 € 132 € 145 € 171
€ 241
€ 291
€ 380
€ 512
€ 658
€ 935
€ 1,241
0
200
400
600
800
1,000
1,200
1,400
2012K2 2012K3 2012K4 2013K1 2013K2 2013K3 2013K4 2014K1 2014K2 2014K3 2014K4
AUM(€mln)
PPI market
Bron: DNB
17. 17
...and now breaking barriers
Private and Confidential
The first open architecture Premium Pension Institution
18. 18
...and now breaking barriers
• i-PensionSolutions
• open platform
• serves the interest of participants
• Open platform facilitates:
• customers to create and maintain tailor made solutions
• asset managers and insurance companies to offer core
business products to their client base, integrated
within a total pension offering
• development of (optional) guarantees
• next generation DC products to be built
6
19. 19
Strategic choices:
• IPS is set up as a foundation. Its sole purpose is to serve and
protect the interests of the pension scheme participants and is a
not-for-profit organization
• Only best-in-class partners,
• stringent due diligence and compliance
• Operational excellence
• Distribution through partners
• SwissRe offers re-insurance, Credit Suisse capital market
guarantees
• Initial start in The Netherlands, European ambition
• Optional guarantees (capital market and insurance)
Core values:
• Protect the interests of the participants
• Transparency
• Integrity
• Independent
• High standards for access to platform
• Strong compliance framework
• Clear governance
• Cost efficient
• Committed for the long term (and strongly capitalized)
...and now breaking barriers
22. 22
Best of all worlds
• i-PensionSolutions offers Pension Savings Product
• Employer selects asset manager and investment strategy
• Employer can select Insurance Company and Insurance Cover
• Pension Administration and integrated communication is executed by i-
PensionSolutions
• The employer signs two agreements:
• [A] Pension Execution to cover Asset Accumulation (as described before)
and,
• [B] Insurance Policy Agreement (Pension Insurance Product) to cover
Biometric Risk insurance with an insurance company
Asset
Manager
Administrator
Stichting International Pension Solutions
(regulated pension entity)
Administration
Asset
Management
[Employer] (Former) Employees
Pension Agreement
Pension
Execution
Agreement
Claim on
vested rights
Custodian
Management Board
Supervisory
Council
External
Advisors
Order
Execution/
Custody
Investment PolicyAdvise on:
Legal, Tax, Actuarial
Investment, Risk Mngt
Investment
Committee
Asset Liability
Committee
Insurance
company
Insurance
Insurane
Policy
Agreement
23. 23
... acting in the interest of participants
Independent governance and
dedicated products
Standard Tailor made
Plain vanilla
Advanced
- Allocation based
on time to maturity.
General set-up
- Allocation based
on time to maturity
- Client specific
- Allocation depending
on (a.o) funding &
standard guarantee
Fully client specific,
both guarantee and
investment scheme
Level of tailoring
Levelofsophistication
SME, Corporates]
Large corporates, multinationals,
other collectives,
Corporates
Multinationals, large other
collectives
24. 24
And now for something completely
different...
• DC has the future
• ...as despite common myths..
• ...the underlying trend is unassailable
• PPI is the best vehicle
• ...supported by massive growth...
• ...and now breaking barriers....
• ...acting in the interest of participants
• Further improvement is on the way
• ...yet myths are tenacious...
• ... and participant interests should outweigh
providers’ interest.
25. 25
...yet myths are tenacious
• Lifecycle invests in equity for young people
because of ‘investment horizon’
• A longer ‘investment horizon’ leads to higher return
• Flywheel of disbursements
• With pension funds, retirees retain investment
exposure
• Longevity risk can be mitigated in a collective
32. 32
Unfunded plan on
Balance Sheet
Partial buy-out /
LDI solution
Insurance Solutions
Transfer risk to insurance vehicle
Low
Required Initial funding (necessary liquidity for single premium)
HighLow
RiskReduction
High
Cash injection into pension plan/
traditional asset allocation
Change plan benefits
(DB DC)
Traditional full buyout
(Insured annuities)
Close fund to new
entrants and accruals
(hard freeze)
Close fund to
new entrants
Asset Management Solutions
Manage Risk-Return
Cash Injection/
LDI solution
Change in employee benefits
Transfer risk to employees
Insurance SolutionsAsset Management SolutionsPlan Design Solutions
Diagram 1: Illustrative Example of Pension Risk Management Solutions
Current
Current
... the underlying trend is unassailable
33. 33
A longer ‘investment horizon’ leads to higher return
Private and Confidential
• Longest, reliable data goes back to
1871
• Only nine complete, independent
series of 15 year return
• Statistically infeasible to make valid
forward looking statements
0
100
200
300
400
500
600
700
800
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15 jaars rendementsperiodes
1871
1886
1901
1916
1931
1946
1961
1976
1991
2006
Bron: RobertShiller,i-PensionSolutions
35. 35
Interest rate is rightfully low. But perhaps too low?
• The "Yuppie/Nerd Ratio"
compares the number of 25-to
34-year-olds ("Yuppies") to the
number of 45-to 54-year-olds
("Nerds").
• This ratio is said to do a good
job of tracking the demographic
pressures on long term interest
rates.
• Nerds buy bonds for retirement,
Yuppies borrow to buy houses,
cars, cribs, etc.
0
1
2
3
4
5
6
7
8
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 2043 2046 2049
10yearrate
YuppieNerdRatio
Yuppie Nerd Ratio (Netherlands)
Yuppie / Nerd (LHS)
10year rate (RHS)
Regressed value
Source: Datastream, Census Bureau, ING Investment Management
36. 36
Risk of underfunding weighs heavily on sponsors (or whomever bears the risk)
Private and Confidential
0
2
4
6
8
10
12
14
16
18
20
85
87
88
90
91
93
94
96
97
99
100
102
103
105
106
108
109
111
112
114
115
117
118
120
121
123
124
126
Fundingratiopoints
Funding ratio
Estimated value 1 year guarantee of additional funding
Bron: i-PensionSolutions