The Pension Fund’s alternative investments include real estate, private equity, alternative fixed-income and absolute return investments.
Real estate investments
The Church Pension Fund is a long-term real estate investor that complies with the principles for responsible investing and requires responsible and socially acceptable practices from its co-operative partners as well. Responsible real estate investing places an emphasis on environmental issues. This is due to the fact that since property and construction play a significant role in the consumption of energy and natural resources, the creation of emissions and, thereby, have an impact on climate change. The construction sector also has a positive impact on employment, and the condition of the properties has a direct influence on the lessees and the attraction of the surrounding areas. The Church Pension Fund considers ESG issues in both direct real estate investments and property fund investments.
Private equity investments
Private equity is interesting from a responsible investment perspective: the private equity investor, as the owner, has the opportunity to influence company operations at an early phase, thereby helping to construct a sustainable corporate culture. The private equity investor can also support new domestic innovations and entrepreneurship, and invest in renewable energies and clean technologies. The private equity investments of the Church Pension Fund consist of private equity funds, which have many other investors. Some of the funds are so-called fund of funds, which invest in other private equity funds. The Church Pension Fund has outsourced the monitoring and administration of its private equity fund investments to an external co-operative partner. The co-operative partner conducts an ESG evaluation of new private equity funds as part of a more comprehensive investment assessment.
Alternative fixed-income investments
Alternative fixed-income investments are alternative funding channels offered alongside traditional bank loan funding. Alternative fixed-income investments include, for example, private credit and microcredit funds. The Pension Fund only invests in funds that have a good reputation and act in a responsible manner. As part of its fund selection process, the Pension Fund requires potential investment objects to commit to the ESG principles, to integrate responsibility issues into investment decisions and to provide regular reporting to investors.
Absolute return investments
The Pension Fund only invests in funds that have a good reputation and act in a responsible manner. As part of its fund selection process, the Pension Fund requires its investment objects to commit to the ESG principles, to integrate responsibility issues into investment decisions and to provide regular reporting to investors.