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NN Pension Investing
Socially responsible investing
Return goes into your pension
All pension funds invest the contributions that have been paid into them. The return they make on those investments enable them to pay you your pension when you retire – preferably a pension that keeps up with inflation so your spending power stays intact. After all, it is likely that thirty years from now one euro won’t buy you as much as it does today.
Prudent investment policy
NN CDC Pensioenfonds has in place an investment policy (Dutch only) with a long-term horizon. While part of your eventual pension benefits will be paid from contributions paid into the pension fund, the largest part will be funded from return on the pension fund's investments. To ensure that there will be sufficient return, NN CDC Pensioenfonds has in place a prudent investment policy which is neither fully risk averse nor fully risk prone, but rather a mix of the two. Based on this policy, the pension fund works with two investment portfolios: a matching portfolio and a return portfolio.
Matching and return portfolios
The matching portfolio accounts for approximately 60% of the pension fund's invested assets. The pension fund uses this portfolio to match its investments with its current and future commitments. This portfolio consists of mainly highly rated European soevereign bonds, which have relatively low risk profiles.
Distribution matching portfolio
Source: Annual Report 31 December 2022
The return portfolio, accounting for some 40% of the pension fund's invested assets, serves to enable indexation. Through this portfolio, which has a higher risk profile, the pension fund aims for higher returns by investing in equity and property.
Distribution return portfolio
Source: Annual Report 31 December 2022
Socially responsible investments
NN CDC Pensioenfonds feels socially responsible and therefore has in place a policy for socially responsible investments (SRI). At present, our SRI policy entails an exclusion list for countries we do not invest in as well as an exclusion list for companies we do not invest in. Moreover, the mandate for equity in developed markets is conducted through specific proxy voting and engagement activities – in this respect, the fund participates in the State Street Global Advisors stewardship programme. The fund does not have in place a system to monitor the relevance and materiality of environmental, social and governance factors, or the methods needed to take such factors into account. This is because the pension fund considers the cost of such a system disproportionate to the nature, scale and complexity of the fund’s activities.
The investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
One of the specific topics of the pension fund's SRI policy is sustainability. The pension fund's policy does not include an assessment of the adverse effects of its investment decisions on sustainability factors. This means the pension fund does not conduct an ESG due diligence regarding the identification and prioritisation of the adverse effects and indicators of its investment decisions on sustainability factors.
There are several reasons why the pension fund does not do this. In this respect, the pension fund makes a distinction between the internally and externally managed investments and between sovereign/semi-sovereign bonds, corporate bonds and equity.
The pension fund does not consider an ESG due diligence policy appropriate with regard to sovereign/semi-sovereign governments in EU countries. For companies, on the other hand, an ESG due diligence is considered appropriate. ESG due diligence reviews are currently not being conducted with regard to internally managed investments. This is because the pension fund considers the cost of such a policy disproportionate to the nature, scale and complexity of the work involved. When selecting an external party, an assessment is made of the overall SRI policy adopted by the party or fund in question. The ESG due diligence policy is not included in this process at present, but this could change in the future, when SFDR has been implemented by market parties.
*DUTCH ONLY*
NN CDC Pensioenfonds en Duurzaamheid
In Europa gelden sinds 2021 regels voor informatieverstrekking over duurzaamheid in de financiële sector. Deze regels gelden ook voor NN CDC Pensioenfonds. De volgende onderwerpen leggen wij hieronder aan u uit:
- Hoe gaan wij om met duurzaamheidsrisico’s.
- Waarom wij geen rekening houden met de belangrijkste ongunstige effecten op duurzaamheid.
- Beloningsbeleid en duurzaamheidsrisico’s.
Hoe gaan wij om met duurzaamheidsrisico’s
Aan beleggen zijn risico’s verbonden. Zo kan de waarde van de beleggingen veranderen door koersschommelingen en gebeurtenissen op de markt. Ook duurzaamheidsrisico’s kunnen van invloed zijn op de waarde van de beleggingen.
Duurzaamheidsrisico’s zijn risico’s op ecologisch, sociaal en/of governance gebied, waardoor de waarde van een belegging kan dalen. Zo kan de waarde van vastgoed dalen als het in een gebied ligt waar de zeespiegel is gestegen en de kans op overstromingen is toegenomen.
De beoordeling en de monitoring van risico’s heeft NN CDC Pensioenfonds in haar besluitvormingsprocedures en risicobeheer opgenomen. NN CDC Pensioenfonds beoordeelt bij haar beleggingsbeslissingen duurzaamheidsrisico’s zoals zij dat ook doet voor andere risico’s.
Als NN CDC Pensioenfonds hoge duurzaamheidsrisico’s bij een belegging vaststelt, kan zij besluiten om een belegging te vervangen door een andere belegging met lagere duurzaamheidsrisico's.
Dit is bijvoorbeeld het geval als NN CDC Pensioenfonds van oordeel zijn dat het risico op onverwachte of voortijdige afschrijvingen, als gevolg van nieuwe regelgeving op klimaat- en milieugebied (stranded assets) groot is.
Ongunstige effecten van beleggingsbeslissingen op duurzaamheidsfactoren worden niet in aanmerking genomen
NN CDC Pensioenfonds houdt geen rekening met de ongunstige effecten op duurzaamheidsfactoren in haar beleggingsbeslissingen. Dit betekent dat het fonds geen onderzoek doet naar de negatieve gevolgen van haar beleggingen op mens, milieu, maatschappij en omgeving.
NN CDC Pensioenfonds belegt de premies om rendement te behalen om een pensioen te kunnen uitkeren. Om de ongunstige effecten op duurzaamheidsfactoren te kunnen berekenen is veel data nodig. Deze data is kostbaar en de kwaliteit ervan is vaak nog onvoldoende. Ook is niet voor alle beleggingen deze data beschikbaar. NN CDC Pensioenfonds weet niet of zij ongunstige effecten op duurzaamheidsfactoren in de toekomst wel gaat meewegen in haar beleggingsbeslissingen. NN CDC Pensioenfonds zal dit periodiek herbeoordelen.