For the portfolio managed by SPF Beheer, SPOV applies an innovative approach with respect to the internally managed listed equity and fixed income portfolios. These are concentrated portfolios, containing 60 to 80 companies, that do not follow the benchmark. This intensifies the approach in which the assets can be evaluated upon selection and monitored afterwards. RI/ ESG criteria are integrated into these processes. Upon selection, extensive research is conducted (using data from ESG data-provider in addition to extensive in-house desk-research) on both the financial as well as the SRI/ ESG side of the investment. Furthermore, SPF Beheer enters into dialogue with the company to get a feel of the business culture, management system and ESG integration into company's core business. SRI/ ESG can be a no-go if negative material issues have been identified. This means that even though a company is not formally on the exclusion list of SPF Beheer, it can be excluded from the internally managed portfolios if the ESG elements of the company do not meet SPF Beheer ESG threshold. After selection, careful monitoring continues including regular dialogue with the company takes place. In this dialogue, SRI/ ESG issues and/or improvements are considered. Due to the limited amount of assets in the internally managed portfolio, SPF Beheer has relatively big stake in a company which gives ease of access to top management. From our experience this leads to true interest about the concerns of ideas for impeovement from the companies.
The above mentioned approach allows SPF Beheer a much better grip and holistic understanding of the SRI/ ESG side of investing compared to index investing. Other pension funds and investment managers regularly visit SPF Beheer to learn more about this approach.