25/10/2011
By Ilonka Oudenampsen
The Dutch pension industry is improving its responsible investment policy, but there is still work to be done, said the Dutch Association of Investors for Sustainable Investment (VBDO).
The fifth edition of the Benchmark Responsible Investment for Pension Funds in the Netherlands showed that both corporate and industry-wide pension funds have improved, although industry-wide pension funds still receive higher scores.
The research methodology focuses on five different asset classes: public equity, corporate bonds, government bonds, real estate and alternative investments. The responsible investment policies of 50 Dutch pension funds have been scored and ranked, using 29 assessment issues divided into three categories with implementation weighing 50 per cent and policy and accountability each weighing 25 per cent.
The top 10 pension funds in terms of responsible investment did not change position, although some improved and some dropped somewhat. The highest score is for Pensioenfonds Zorg en Welzijn, followed by SNS REAAL Pensioenfonds, ABP and PNO Media. Numbers five, six and seven (BPF Bouw, Architectenbureaus and BPF Landbouw) improved, while Spoorwegpensioenfonds and Stichting Pensioenfonds Openbaar Vervoer dropped a little. At the bottom of the top 10 was PME.
Almost all pension funds have a responsible investment policy, but the quality of these documents differs greatly, VBDO said. Six in 10 have a policy that applies to less than 75 per cent of their portfolio.
Pension funds now look beyond their public listed equity portfolio, especially in favour of the real estate and government bond portfolios. Although progress has been made, the pension funds are encouraged to further implement the responsible investment policy across all asset classes. A specific focus should be on these asset classes where the pension fund is highly invest in, which will allow the pension fund boards to prioritise, the association said.
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