Bosch Pensionsfonds (BPF) was founded in 2002, but with over 210,000 beneficiaries, increasing complexity, and a projected doubling of its €6.7bn portfolio in the next ten years, it saw that a major leap forward was needed to accelerate its development. It therefore developed a strategy to make BPF more flexible and effective, future-proofing its position.

To ensure sustainable investment success, BPF decided to expand activities in alternative asset classes. By exploiting the entire spectrum from private and infrastructure equity through to private corporate debt and real estate, its portfolio now combines high return opportunities with relatively low volatility, allowing it to consistently outperform expectations. The creation of a dedicated inhouse team and a meticulous manager selection process have been crucial in achieving this impressive track record.

Aiming to enhance transparency as well as effective monitoring and steering, BPF has developed a groundbreaking bespoke reporting system tailored specifically for its alternative investments. Backed by almost thirty review criteria across seven critical dimensions, it provides unparalleled insights to assess the progress of each investment, identifying potential areas for improvement. Reporting results have empowered the inhouse team to engage in meaningful dialogue with managers, providing benchmarks to strengthen negotiating positions.

BPF has earned a reputation for its exceptional risk management capabilities, with innovations such as its fund-based pension (“Fondsrente”) -- typically offering retirees a higher income than a lifetime annuity -- and its internally developed management system consisting of retroactive and predictive reporting supported by a sophisticated traffic light algorithm. All risk management activities are overseen by a dedicated risk manager.

BPF recently launched its “excellent member service” to reach unparalleled service levels by regarding the member as the most important stakeholder. An already resilient administration was transformed into a member-centric unit, with processing times and accessibility defined by the expectations and specific needs of members.