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TKP Investments

TKP Investments. Fiduciary Management and International Asset Pooling. A presentation to the AIMSE Conference. London, February 27 th 2007 Roelie van Wijk, CIO. Agenda. Context - TKP Investments Trends and developments Fiduciary Management International Asset Pooling

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TKP Investments

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  1. TKP Investments Fiduciary Management and International Asset Pooling A presentation to the AIMSE Conference London, February 27th 2007 Roelie van Wijk, CIO

  2. Agenda • Context - TKP Investments • Trends and developments • Fiduciary Management • International Asset Pooling • Market opportunities • Conclusion

  3. Context - TKP Investments • Strong pension fund roots (former pension fund for Dutch Post) • Since 1989 fiduciary management and multi manager approach • In total 10 billion euro Assets under (Fiduciary) Management • Since 2003 100% subsidiary of AEGON • Close cooperation with other AEGON subsidiaries e.g. Diversified Investment Advisers (United States)

  4. Trends and developments pension funds new rules and regulations concerns of sponsor complex financial markets ? ? ? ? pension fund board ? ? • outsourcing of asset management: • specialist single managers • multi-managers • fiduciary management • shift from DB to DC schemes • joining industry wide pension funds • reinsurance of liabilities • international asset pooling

  5. What is fiduciary management? • Partnership between pension fund’s board and fiduciary manager • Board concentrates on strategic issues (e.g. premium policy, indexation policy, strategic asset mix, risk budget) and supervises the fiduciary manager • The fiduciary manager advises the board on strategic issues and takes over all operational issues

  6. Activities of the fiduciary manager • Advice on strategic issues • ALM study • Portfolio construction • Selection, hiring, monitoring and firing external managers • Continuous risk management • Coordination of performance measurement and attribution analysis • Reporting to client and regulator

  7. Fiduciary Management Monitoring Liability driven restrictions Strategic mandate and risk budgetting Mission and goals ALMstudy Performance, attribution and reporting Portfolio construction Multi manager pools Risk monitoringand -management Multi Management Our modular proposition

  8. International asset pooling • Governance rules are forcing multinationals to consolidate their pension plans • Consolidated pension plans will lead to economies of scale and cost savings • The biggest benefit for multinationals is in asset pooling • Pooling: combining pension assets from different territories tax efficiently • Further development of our local multi-manager capabilities internationally

  9. EXTERNAL Shorter life cycle Portable alpha Open/Guided platforms Economies of scale Globalisation Multinational Pension Funds INTERNAL Client diversity Costs Fiscal treatment differences Innovation Quality of processes and system Drivers for our development of pooling (APN) CONSIDERATIONS • How do we maintain the fiscal status of different participants? • Which legal vehicle is most suitable? • Consolidation of assets? • …….

  10. Market opportunities Current “hot spot” Core market Future hot spot Multi- management Multi-national PF pooling Fiduciary management Key benefit for multi-nationals Critical role for multi-management Exponential growth market in the Netherlands Midsize and larger PF The rest of Europe to follow? Growth market in Europe Wholesale clients and smaller PF

  11. Conclusion • The pension fund world is changing rapidly driven by regulatory change • There is a growing need for integrated solutions (client intimacy) • Fiduciary Management will grow together with pension administration (as part of a bundled proposition) • As a stand alone proposition Semi Fidiciary Management will grow: pension funds want flexibility to select only part of the building blocks • The future ‘fiduciary’ winners will provide domestic solutions in a global framework (international pooling)

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