Asset management

Effective asset management is crucial for any pension fund that wants to be able to fulfil its obligations in the long term. The point of departure for Blue Sky Group is the client's objectives and strategy. We have expertise with both sides of the balance sheet and are therefore able to link optimal investment results to integral risk management and up-to-date information. Blue Sky Group can advise you about the development and execution of your strategic investment policy, including the portfolio construction. The portfolios are managed by external asset managers who we select on the basis of a stringent selection process and continually monitor. Blue Sky Group has adequate risk management and control systems which are structurally embedded in our organisation. We regularly supply reports which are tailor-made to your wishes and circumstances. In that way we can ensure that you can actually assume your responsibility as required.

Thanks to the scale at which we operate, you can participate flexibly in one or more of the investment funds which Blue Sky Group offers.

Strategic goals as a basis

The primary focus during the development and execution of an investment policy is on making an optimal contribution to your strategic objectives. The policy has to lead to a positive investment result, outperformance and, above all, control of the coverage ratio. Blue Sky Group bases its work on the total balance sheet. The issue is then which risks the fund is willing and able to bear in the light of the goals to be achieved in the long term. 

We carry out extensive research in the form of an ALM study. This enables you to set the financial frameworks for the long-term investments and we can advise you about the portfolio construction. We also involve the agreements which the pension fund has made with the participants, the long and short-term risks which the pension fund is running and the most suitable investment options.

All this is incorporated into the investment plan which we draw up on your behalf. This investment plan also details the most important investment themes. The plan provides details on the strategic allocation, benchmarks and overlay strategies. The plan also deals with additional policy-oriented points of departure, such as securities lending, risk budget for active policy and collateral management.  Here too we focus a great deal of attention on mutual understanding and clarification so that you can take well-considered decisions

 

 

From investment plan to portfolio construction

The investment plan forms the basis for the compilation of a suitable investment portfolio. Together with you we check which choices best suit your strategic goals and ensure a proper balance between return and risk. The focus is then also, for example, on the scope, the optimal composition and the mutual balance between the matching portfolio and the return portfolio. We assess for each segment whether it is better to invest actively or passively. In addition we spread the investments so that you can benefit from the lengthy investment horizon.  

Critical selection of external asset managers

We select our external asset managers on the basis of their quality and background. We only collaborate with experienced teams that have a clear investment philosophy and have proven themselves to be successful. That is the basis for attaining the agreed return goals for which we select specialised external asset managers who manage the investment portfolios passively or actively. Thanks to the scale at which we operate, you can participate flexibly in one or more of the investment funds which Blue Sky Group offers. We invest in various regions, styles, market segments and sectors. 

 

Sound risk management

Every day we monitor the external asset managers and the total risk profile of our clients, at both balance sheet and portfolio level. Blue Sky Group has adequate risk management and control systems which are structurally embedded in our organisation. Examples are strategic risks, such as balance sheet risk, and operational risks in the event of overlays. We carry out an internal risk assessment every year. This involves us analysing specific risk areas, such as the operational organisation, the IT risk management framework and the continuity of the business operations.

 

Reports: customised clarity

We attune the reports to your wishes, for example as regards the frequency, the level of detailing and the graphic presentation. In the reports we will inform you, in any event, about:

  • the investment method,
  • the results achieved,
  • the risk management,
  • developments on the financial markets which may affect the investment portfolio,
  • the balance sheet and the development of the coverage ratio.

We will discuss the reports with you at least every quarter. During these discussions we assess the performance and the risks, and we discuss the desirability or necessity of adapting the portfolio or derivatives positions.

 

Asset manager code

Blue Sky Group is a member of DUFAS, the Dutch Fund and Asset Management Association. Blue Sky Group endorses the Asset Manager Code which DUFAS adopted in 2014. This code contains ten basic principles. The main focus is on putting client interests first, a sound administrative structure for asset managers and investment funds and a high degree of van transparency as regards returns and costs.

MiFID II: protection of investors and transparency of the trading venue

The Markets in Financial Instruments Directive (MiFID) II will come into force on 3 January 2018. The objective of MiFID II is to improve the protection of investors and to promote transparency of the trading venue. MiFID is part of European legislation that applies to investment firms that provide investment services to clients within the European Union. The asset management that Blue Sky Group carries out must satisfy the MiFID requirements. The introduction of MiFID II also has implications for clients.

 

Blue Sky Group provides the following investment services to which MiFID applies:

  • performing asset management activities (portfolio management)
  • providing investment advice to clients;
  • receiving and transmitting orders; and
  • executing orders for the account of clients.

Clients will mainly notice the more stringent requirements regarding the provision of information. BSG Asset Management will provide more information to clients, including more specific information about the asset management services and more specific information about the costs in connection with asset management and investment advice.