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• 09:00 – 10:00: The Dutch Pension system

Herman Wijffels

• 10:00 – 11:00: Shell Pension fund

Willem Handels

• 11:00 – 12:00: An introduction to APG

Jeroen van Gelderen

• 12:00 – 13:00: Lunch

Agenda

An introduction to APGOwned by pension funds, for pension funds

Jeroen van Gelderen

Amsterdam

May 19, 2010

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In the Netherlands, pension services are in most cases outsourced to professional

financial institutions, pension delivery organisions (PDOs).

Asset management and investment services ALM Investment advisory services Asset management Risk management Reporting Custody services Treasury

Pension administration Support to the Board of Trustees Advisory services Reporting and annual report Collection of contributions Pay-out phase Administration Communication

Pension Delivery Organisations (PDOs)

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Dutch pension service providers

Source: Annual Accounts Source: Annual Accounts

Pension providers - Assets Under Management (2008)

0 50 100 150 200 250

Aegon (incl. TKP Pensioen)

Aon

Blue Sky Group

Delta Lloyd

Hewitt

ING (AZL & Nationale Nederlanden)

SAMCo

SPF

Fortis/ASR

Mn Services

PGGM

Syntrus Achmea

APG

Assets (€bln)

Company

Industry

Professional

Other

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Dutch pension service providers

Source: Annual Accounts Source: Annual Accounts

Pension providers - Participants (2008)

0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000

Aegon (incl. TKP Pensioen)

Aon

Blue Sky Group

Delta Lloyd

Hewitt

ING (AZL & Nationale Nederlanden)

SAMCo

SPF

Fortis/ASR

Mn Services

PGGM

Syntrus Achmea

APG

Participants (x 1000)

Company

Industry

Professional

Other

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Profile of APG

• Established in 2008, but with a long tradition and experience in managing pensions

• Result of a merger of APG and Cordares• Servicing, among others, the pension fund for the public sector, the

building sector, housing and the cleaning industry• Assets under management amount to more than EUR 230 bn• Servicing 20,000 employers and more than 4 mln plan members• Owned by pension funds• No profit maximisation• Offering a full range of pension services

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Strategy of APG

Clients

Products / services

Business Enhancing the Dutch collective pension system (2nd pillar) by offering high quality at a reasonable price

Enhancing the Dutch collective pension system (2nd pillar) by offering high quality at a reasonable price

Focused approach, in order to quarantee high level of quality

Focused approach, in order to quarantee high level of quality

Integrated approach, but always fitting fund-specific requirements and demands

Integrated approach, but always fitting fund-specific requirements and demands

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Integrated approach towards pension services

Board of Trustees

Assets Liabilities

• ALM• Advisory services• Pension fund asset management

– Targeted at fund objectives

– Long term perspective

• Reporting• Custody

• Collection of contributions

• Administration

• Communication

• Payments

• Reporting

• All fund specific

• General support • Risk management

• Advisory services

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Asset management

‘Portfolio optimization platform’• Allocatie and overlay• Treasury and trading• Strategy and research

‘Income Portfolio’

1. Treasuries

2. Index Linked Bonds

3. Credits

4. Cash

5. Infrastructure

6. Absolute Return Strategies

7. Liability Hedging Alternatives

‘Growth Portfolio’

1. Developed equities

2. Emerging equities

3. Private equity

4. Real Estate

5. Commodities

6. Return Optimizing Strategies

7. Innovations

Characteristics asset management

• Two basis portfolios aimed at specific risk/return profile

• Focus on pension specific asset management

– Alignment fund and asset manager

– Focus on implementation and innovation

– ESG

Advantages for pension funds

• Alignment with overall objectives of the fund

• Innovative & socially responsible

• Long term, pension related focus

• Access to alternative asset classes

• Low costs

Asset Management

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Pension administration

Characteristics• Account management is key

– Strong link with social partners

• Expertise with respect to legal and financial pension issues

– Strong presence in “The Hague” and “Brussels”

• Expertise and experience with pension fund communication

• Effective and efficient collection of pension fund contributions

• Overall approach to income-substituting old-age benefits

Benefits for pension funds• High quality at a reasonable price• “Best in class” advise• Fund-specific approach• “Fiduciary” approach with respect

to servicing employers and plan members

• Transparant communication to plan members

• Operational excellence• If desired, more than only pension

services in relation to old-age benefits

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APG, all round pension provider

APG Group

‘Shared services’‘Shared services’

‘Shared framework’‘Shared framework’

Asset management

Asset management

Pension admini-stration

‘Cordares’

Pension admini-stration

‘Cordares’

Pension admini- stration‘APG’

Pension admini- stration‘APG’

Supple- mentary products‘Loyalis’

Supple- mentary products‘Loyalis’

• IT-supply

• Procurement

• Facilities

• Payments & receivables

Bundling pension-expertise and -control• Pension policy/advisory

services• Financial control• Risk management

APG Group

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Contact details

Jeroen van Gelderen

Senior Actuary Consultant J.vanGelderen@cordares.nl +31 20 583 35 86

Ruben Laros

Junior Business Developer Ruben.laros@apg.nl +31 20 604 92 14