Investment policy

In formulating its investment policy and distributing its portfolio over the various asset managers Pensioenfonds Horeca & Catering observes the following principles:

• diversification of assets over a range of asset classes, asset managers, and investment styles;
• the best asset manager per investment mandate;
• active management in markets where that may generate added value, otherwise passive management.

Strategic investment policy

The Fund observes the following strategic portfolio weighting over the various asset classes: 50% equities, 40% fixed income securities and 10% property.

Tactical investment policy

Tactical investment policy is delegated to professional institutional asset managers. With their market vision and specific expertise in their field they can be expected to achieve better returns relative to previously agreed benchmarks. They allocate on a regional, country and sector basis, selecting specific investment opportunities within these. Tactical policy implementation is obviously subject to risk exposure limits determined and supervised by Fund management.

Asset managers

Tactical asset management at Pensioenfonds Horeca & Catering is based on a multi-manager structure. In its early days the Fund delegated its asset management entirely to one sole firm. Other asset managers were appointed from 2001 onwards. Pensioenfonds Horeca & Catering currently uses the services of 12 asset managers. This multi-manager approach has so far produced a good performance record.

Benchmark

Pensioenfonds Horeca & Catering assesses the performance of its overall portfolio and returns per asset class against relevant benchmarks (or “norm” performances). Benchmarks provide an objective criterion for the composition and performance of invested assets.