Really Investing for the Long-Term: A Case Study

9 Pages Posted: 18 May 2012

Date Written: Spring 2012

Abstract

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

Suggested Citation

van der Velden, Alex and van Buul, Otto, Really Investing for the Long-Term: A Case Study (Spring 2012). Rotman International Journal of Pension Management, Vol. 5, No. 1, p. 50, 2012. Available at SSRN: https://ssrn.com/abstract=2061696

Alex Van der Velden (Contact Author)

PGGM Investments ( email )

Utrechtseweg 44
P.O.Box 117
Zeist, 3700 AC
Netherlands

Otto Van Buul

PGGM Investments ( email )

Utrechtseweg 44
P.O.Box 117
Zeist, 3700 AC
Netherlands

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