ZERO DIGITAL FOOTPRINT - Amsterdam Data Science · CO2 footprint of equity portfolio by 25% in 2020...
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ZERO DIGITAL FOOTPRINT PLAYING DATA DEFENSE TO PROTECT PENSIONERS INCOME April 2019 Marcel Prins COO APG Asset Management
Transcript of ZERO DIGITAL FOOTPRINT - Amsterdam Data Science · CO2 footprint of equity portfolio by 25% in 2020...
ZERO DIGITAL FOOTPRINT PLAYING DATA DEFENSE TO PROTECT PENSIONERS INCOME
April 2019
Marcel Prins COO APG Asset Management
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Facts and figures
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Pension value for participants
€18 Employer Contribution
€75 Investment Income
€7 Employee Contribution
No concern for later income, APG achieves great returns
I find it extremely important that they invest in such a sustainable way
I get perfect and personalized insight in what my pension will look like
“ “ “
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Broadly diversified long term responsible investor
Fixed Income 38% of total AUM
Private Markets 26% of total AUM
Active use of our scale and ownership to achieve long term responsible investment returns
Listed Equities 36% of total AUM
Values as of Q4-2017
Developed Markets
Equity, €131bn
Emerging Markets Equity, €43bn
€174 billion
Credits, €67bn
Treasury, €68bn
Inflation Linked Debt, €36bn
Emerging Markets
Debt, €14bn
€185 billion
Private Equity, €23bn
Real Estate, €50bn
Commo-dities, €22bn
Infra- structure,
€11bn
Hedge Funds, €20bn
€126 billion
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We innovate to maximize the pension value
Redefining outperformance capital markets
Portfolio Return
Market Return
Market Return
Market Return
Alpha
Alpha Alpha
Factor Return
1960s 1980s 2000s 2020s
Trad. factors
Alt. data factors
Responsible and sustainable investing
Reduction in CO2 footprint of equity portfolio by 25% in 2020
Investments that contribute to a better and cleaner future: from €29 billion to €58 billion in 2020
Including investments in renewable energy: from €1 billion to €5 billion in 2020
-25% + €29 bn + €4 bn
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Data and AI driven examples: Central Bank Communications and ESG measurement
Central Bank Communications
Contribution Measurement Carbon Footprint
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In 2016, the United Nations’ Sustainable Development Goals came into effect
APG subscribes to the
SDGs through its
Sustainable Development
Investments (SDI):
investments in companies
whose products and/or
services contribute to the
realization of the SDGs
“The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.” http://www.undp.org/content/undp/en/home/sustainable-development-goals.html
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From company universe to SDI candidates U
nstr
uctu
red
Annual reports
Trade descriptions
Web pages
Patents
industry codes, countries, financials
Stru
ctur
ed
100s of text documents per company SDI judgment process Human – Machine collaboration
SDI Not SDI
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Applying NLP and semantic modeling reveals meaningful structures
Thermal energy
Cogeneration-plants & fossil-fuels
Waste and water treatment
Offshore wind farms
Sustainable energy
Solar photovoltaic
Hydrocarbon-fuels
Wafers & solar cells Hydrogen-fueled
Renewable energy sources; solar, wind, thermal
Water treatment
Energy storage Hydrogen technology
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Efficient screening of 10.000 companies
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Risk: Greenwashing
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Risk: “Knowing what you use” has potential value
Hedgefund A Hedgefund B
+1.5% higher
annualized returns
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Our ambition: Zero Digital Footprint
Awareness & Behavior
Acquired Services
Alternative Data
Market Interaction
Outside Presence
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Know Data Lineage
Assess Data Rivalry
Assess Excludability
Assess Risks
Define & execute
Data Defense strategies
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[email protected] Rethinking Alternative Data in Institutional Investing Monk, Prins, Rook The Journal of Financial Data Science, Winter 2019, 1(1) 14-31 Do Hedge Fund profit from Public Information? Crane, Crotty, Umar May 21, 2018, available at SSRN
