Dynamic risk management, showing courage and nurturing the Dutch consultative model. Those are the key recommendations for pension funds in terms of developing a new strategy. They form the conclusion to the Pensioenvisie Conference "Wait and see or take control?", which Delta Lloyd Corporate Clients hosted on Wednesday 22 April this year at the Hilversum Media Park, chaired by Dominique Haijtema.
- Recommendations for pension funds during the Pensioenvisie Conference 2009
Dynamic risk management, showing courage and nurturing the Dutch consultative model. Those are the key recommendations for pension funds in terms of developing a new strategy. They form the conclusion to the Pensioenvisie Conference "Wait and see or take control?", which Delta Lloyd Corporate Clients hosted on Wednesday 22 April this year at the Hilversum Media Park, chaired by Dominique Haijtema.
No pension fund has been left unscathed by the credit crisis. It's high time that pension fund administrators take control in these lean times. They also have a moral obligation in that regard, in view of their responsibility for the retirement provision of millions of people. Where should pension fund administrators focus their attention when it comes to setting their rates?
Niek Hoek, chairman of the board of directors of Delta Lloyd NV, stresses the importance of dynamic risk management, and not only focussing on short-term returns. In his view, that requires a diversified portfolio focused on the long term, combined with the limitation of interest rate risk. A valuable tip: only invest in products that you understand.
Jeroen Smit, editor and author of the book The Prey, makes the case above all for a critical assessment of the chairmen of the boards of large companies. Are they experienced and credible, or do they just see their own version of reality? The arrogance of those at the top has caused a great deal of misery, as Smit is aware. That is not limited only to Ahold and ABN Amro. Pension fund administrators must show the courage to be openly critical at shareholders' meetings in the interest of the stakeholders whom they represent.
Taking control is showing leadership. But history teaches us that the Dutch do not accept leaders, observes Herman Pleij, professor of Historical Dutch Literature at the University of Amsterdam. Rather, we favour collegiate administration. He has a particularly high regard for the "polder" model due to its effectiveness. It is an extremely effective way to involve everyone, and as a result is a source of great innovation. "Nurture this typical Dutch consultative model", is therefore his advice to the pension sector.
The fact that we are living longer and becoming less attentive to others is seen by Tim Burggraaf, European Partner at Mercer, as a threat to the Dutch pension system. Pension funds need to come out from behind the scenes and take charge. Let the distrustful Dutch public see that, as a sector you have your business in order. So communicate! In plain Dutch, without technical language or slogans.
Leo Dooper, director of PensioenCoöperatie says: "Just tell people what a pension is and help get rid of the 70% of myths. Explain in simple terms what a degree of cover is and why you can't index-link. People can certainly understand the message - in the Netherlands we understand everything about money."
Gerard Riemen, director of the Association of Industrial Pension Funds, is no advocate of informing the stakeholder in detail of complex matters such as interest rate fluctuations, swaps, market value and volatility. "But you do have to explain that there are risks and why you as a pension fund are taking certain risks. You only win back confidence through honesty."
Tom Touber, campaign director for Team Delta Lloyd at the Volvo Open Race, brought the Pensioenvisie 2009 Conference to an end with an inspiring talk about sailing in harsh weather conditions: how you stay upright in the storm and how you perform at your best in your team. A meaningful observation for the pension sector: "On board a boat it's never the man at the helm who gets sea sick."
Delta Lloyd's Pensioenvisie 2009 Conference is especially aimed at pension fund administrators, directors and managers. The objective is to share knowledge, offer insights into practical solutions and to inspire delegates with innovative approaches. That is what attracted noteworthy speakers from inside and outside the pension sector.
Further information about the conference can be found at www.deltalloyd.nl/pensioenvisie2008
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For further information:
Sandra de Jong
Spokesperson for Delta Lloyd Insurance
Telephone: (020) 594 27 07
E-mail: pers@deltalloyd.nl