AlectaAlecta

Alecta and PGGM agree co-investment in Credit Risk Sharing

Share

Today Alecta the SEK 900 billion Swedish pension fund and PGGM the EUR 252 billion asset manager for Dutch pension funds announce they have signed a unique co-investment agreement to invest in credit risk sharing transactions

In credit risk sharing transactions banks transfer part of the credit risk of a portfolio of loans to investors while continuing to hold a share as well. With these kinds of transactions investors get exposure to unique credit risks that is not otherwise available. The benefit for the banks is freed-up capital that can be re-used again, for example for new loans to clients.

PGGM has been growing a credit risk sharing (CRS) portfolio for PFZW (pension fund for Dutch healthcare workers) since late 2006 up to EUR 5 billion as of March 31st 2020 and established itself as one of the most experienced and largest investors in this field. Alecta, as part of their expansion into private market assets, has decided to build a sizeable portfolio on its own book, and desires to do so on the same basis as PGGM has.

PGGM’s track record with an average annual return of slightly above 10% since inception and outspoken focus on high-quality, sensibly structured transactions have characteristics that stand out in the global market of structured credit investors. For Alecta these characteristics hold a lot of value and formed the basis to start working together.

PGGM finds it important to help the market of risk sharing transactions develop further long term on a sound and solid basis. As such PGGM embraces the fact that a large like-minded pension fund wants to invest in the same way. Another benefit is that while continuing to grow the CRS portfolio it allows for further diversification at a faster pace with even more capital to invest. Alecta will purchase 30% and PGGM 70% of each co-investment transaction.

Tony Persson, Alecta’s head of Fixed Income and Strategy adds: “This is probably the first time where two of the major European pensions funds are co-operating so closely in an effort to allocate capital wisely in combination with generating healthy returns while supporting societies in challenging times by financing part of the banks’ credit risk.”

Mascha Canio, PGGM’s head of Structured Credit investment adds: “We hope that in the pension fund industry more such collaborations will follow to the benefit of pension fund members.’’

About PGGM

PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On December 31, 2019 PGGM had EUR 252 billion in assets under management and was administrating pensions of 4.4 million participants. Around 750,000 workers in the Dutch healthcare are connected to PGGM&CO, our members organization. Either alone or together with strategic partners, PGGM develops future solutions by linking together pension, care, housing and work.

www.pggm.nl

About Alecta

Alecta manages occupational pension plans for 2.6 million people and 35,000 businesses across Sweden. We were founded in 1917 and we are owned by our customers. Our most important task is to ensure that our customers occupational pension grows, while working to ensure that more people can benefit from the security which an occupational pension provides. On December 31, 2019 Alecta had SEK 963 billion in assets under management.

For more information:

Alecta

Head of External Communication and Media Relations

Jacob Lapidus

jacob.lapidus@alecta.se

+46 (0)76 16 43 959

www.alecta.se

@alecta

PGGM Corporate Communication
Maurice Wilbrink

maurice.wilbrink@pggm.nl

+31 (0)30 277 97 35

www.pggm.nl

@PGGMnieuws

Contacts

Images

Tony Persson, Head of Fixed Income and Strategy. Photo: Evelina Carborn
Tony Persson, Head of Fixed Income and Strategy. Photo: Evelina Carborn
Download

About Alecta

Alecta
Alecta
Regeringsgatan 107
10373 Stockholm

+46 76 16 43 959http://www.alecta.se

Alecta är förvaltare av tjänstepension sedan 1917. Vårt uppdrag är att ge kollektivavtalade tjänstepensioner så stort värde som möjligt för både våra företags- och privatkunder. Det gör vi genom god avkastning, bra kundservice och låga kostnader. Vi förvaltar drygt 900 miljarder kronor åt våra ägare som är 2,6 miljoner privatkunder och 35 000 företagskunder.

Subscribe to releases from Alecta

Subscribe to all the latest releases from Alecta by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Alecta

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom