Investment policy

The SNPS (Shell Nederland Pensioenfonds Stichting) investment policy is recorded in outline in the Statement of investment principles (pdf). This policy is determined by the SNPS board. The investment policy is elaborated in detail in the Investment Memorandum and the Investment Guidelines.

Investment objectives
The objective of the investment policy is to aim for the best possible investment results for the individual member - given its obligation structure (‘replacement ratio’) and risk appetite (within the limits set by the board). The investment policy is substantiated and tested by means of a quantitative study.

Investment Beliefs
SNPS has the following (general) investment beliefs:

• Consciously taking investment risks is necessary to generate returns; unrewarded risks on the other hand, should be covered as much as possible where this makes (economic) sense;
• Diversification of investments improves the risk-return profile of the entire investment portfolio, whereby the underlying sources of risk and return are explicitly taken into account;
• Age-related investing gives participants a solid basis for an optimal risk-weighted (pension) result;
• The pension fund’s governance must be in line with the degree of complexity of the investment strategies and underlying portfolios;
• Internal and external expertise, combined with robust countervailing power, leads to well-considered investment decisions;
• Involved ownership stimulates good governance and corporate social responsibility. Integration of 'ESG' factors is essential in the investment cycle and leads to an improvement of the risk-return profile;
• Active management can add value because not all markets are always equally efficient; and
• Additional costs are, within certain limits, acceptable for generating additional expected returns, better managing risks or achieving important investment objectives.

The investment beliefs are reassessed every three years and adjusted if necessary.

Elaboration of investment policy
SNPS offers participants in the accrual phase the choice to invest via three life cycles (defensive, neutral and offensive). These life cycles are made up of different Life Cycle Portfolios. The Collective Benefit Phase (CVP) has been designed for participants who opt for a variable pension after retirement. The further elaboration of the life cycles, the Life Cycle Portfolios and the CVP is laid down in the Statement of investment principles (pdf).