You can count on quality assistance and implementation of your asset management process: from policy development to strategic advice and portfolio construction. After an introduction, we present you with an action plan. This will include:

  • advice on Asset Liability Management;
  • an investment strategy tailored to your pension funds’ liabilities and ambitions;
  • a proposal for a strategic portfolio;
  • a proposal for implementation and transition of your pension assets.

Risk management has three levels (lines of defense)

First risk management level

At the first level, the fiduciary manager is responsible for advising on strategic risk allocation and risk management. The portfolio managers and operations & IT departments are responsible for identifying, evaluating, managing and monitoring risks. This also includes monitoring whether their daily activities and associated risks remain within the boundaries set in the policy framework and procedures. On an annual basis, managers substantiate the so-called internal in-control statement. This also serves as a basis for the mandatory management statement in APG Asset Management’s ISAE 3402 report.

Second risk management level

The second level includes independently positioned Finance, Risk Management and Compliance functions. These departments has ownership of the overall risk management framework and methodology. They independently form their opinion on risk assessments from the first line, thereby identifying unnoticed potential risk areas and giving a judgment on mitigation measures by the first line if necessary. In addition, they ensure that APG Asset Management employees meet risk limits and act within the frameworks of risk management. Assessment and advice on overall prudency of propositions is also in the scope of the second risk management level. Finally they are responsible for monitoring and reporting risks.

Third risk management level

At the third level, the auditors of the Audit Department of APG Group frequently perform independent reviews of the effectiveness of the risk processes at APG Asset Management. They report their findings directly to the Directors of APG Asset Management.

Approach

This three-level-approach promotes controlled execution of the pension fund clients’ investment mandates and APG Asset Management’s operations. Additionally, external auditors at least annually assess the structure and performance of APG Asset Management’s processes in the context of the annual financial statements audit. They also assess specific APG Asset Management reports to customers or their auditors, such as ISAE 3402.