Really Investing for the Long-Term: A Case Study
9 Pages Posted: 18 May 2012
Date Written: Spring 2012
Many public company decisions continue to be dominated by short-term thinking, which can lead to negative long-term consequences for investors. Pension funds have a duty to act in the financial interest of their beneficiaries as investors, but they can achieve this only within a framework of good corporate governance and long-term sustainable investing. This article details the steps that Dutch asset manager PGGM has taken in this direction by creating the Responsible Equity Portfolio, a dedicated equity portfolio with a long-term investment horizon that integrates financial, environmental, social, and governance factors with active ownership. The article sets out the investment philosophy, implementation processes, and results of this unique strategy.
Keywords: Active Ownership, Long-Term Investing, Pension Fund, Responsible, Sustainability
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