We apply an innovative approach with respect to the internally managed equity and credit portfolios. These are concentrated portfolios, containing 60 to 70 companies, that let go of the benchmark. This intensifies the approach in which the assets can be evaluated upon selection and monitored afterwards. SRI criteria are integrated into these processes. Upon selection, extensive research is done (both via a research provider as well as in-house) on both the financial as well as the SRI side of the investment. Also, SPF Beheer enters into dialogue with the company. SRI can be a no-go if material issues with a company are found. Even if a specific company is not formally on our exclusion list, it can be excluded from these internally managed portfolios if SPF Beheer does not feel sufficiently comfortable with the ESG policy of the company. After selection, careful monitoring continues and regular dialogue with the company takes place. In this dialogue, SRI issues and/or improvements are considered. Due to the limited amount of assets in the portfolio we often have a rather big stake in a company which gives ease of access to top management. SPF Beheer regularly notices that companies have a true interest in their concerns and/or ideas.
The approach gives us a much better grip on the SRI side of investing than indexinvesting, where you can exert influence only to a certain extent. With this approach we have won the FD/IPN awards for best long-term investment in 2013. Other pension funds and investment managers regularly visit SPF Beheer to learn more about this approach.