Important Data / Figures Vidanova
 Foundation started April 25th, 1968 (45 years track record);
 Sponsors and participants are represented in Board;
 Collective pension plans 12: 4 DB (FP/AP) and 8 DC (Premium varies: 6%-16%);
 Disability and Survivors Risks covered through Reinsurer Alhermij (SwissRe);
 Fully Integrated administration (participants, actuarial, payroll, financial, securities);
 ISO 9001 – 2008 certified since 1998;
 Compliant with pension fund ordinance PB 1985 no.44;
 Assets ANG. 752 million per 30/06/2013;
 Liabilities ANG. 648 million per 30/06/2013;
 Total participants 4381 per 30/06/2013;
 Solvency (asset to coverage) ratio Q2, 2013 =>116 % (Never had an underfunding);
 Prudent mortality tables GBM/GBV 2000-2005 with 1 year age deduction;
 Long Term Net Fund Returns over 45 years: > 7% on average;
 Long term average indexation % per year (period 1988 – 2012) is: > 2%;
 Website: (www.vidanova.net).
MISSION
To become the preferred private collective
pension provider in the Dutch Speaking
Caribbean
VISION and GOALS:
Committed with its clients. Clients’ pension interest forms
an optimal basis for transparent and quality service
Realize consistent and managed growth while guaranteeing
efficiency
Form strategic alliances that add value with commercial
institutions and institutional investors
CORE VALUES:
Professional and Meticulous
Accessible and Involved
Motivated and Innovative
Efficient and Result oriented
Independent and Transparent
Client and Service Driven
Current Governance Structure
2002 - 2013
Sponsors
Participants
Governance Structure
Supervisory
Authority
CBCS
VIDANOVA PENSION FUND
FOUNDATION
External Accountant
PWC
Board of Supervisory Directors
Board of Managing
Directors
Vidanova Pension Management
Foundation
Operations
External Actuary
Milliman
Advisors:
 LCG Associates
 AIC International
 Corporate Financial
Solutions
 ICTAS
 BNY Mellon
 Spotlight / Stradius
 The Galan Group
Pension Fund Governance Development
1. Governing body
5
(12. Redress)
2. Identification of responsibilities
4
3
11. Auditor
3. Delegation and expert advice
2
1
10. Accountability
4. Custodian
0
9. Actuary
5. Suitability
8. Disclosure
6. Risk-based internal control
7. Reporting
2003
2005
2010
VIDANOVA Pension Management
Executive Director
Advisors
Financial /
Investments / Legal /
ICT
Manager Business
Unit
Pensions
Coordinator
Pensions & Payroll
Collaborator /
Advisor Pensions
Manager Business
Unit
Finance
Coordinator Finance
Receptionist /
Archive
Collaborator
Collaborator
Finance & Payroll
QUALITY IMPROVEMENTS
Quality and electronic process handbook
Disability and Survivors Risks (DB plans stop loss) DC plans reinsured at Elips
ISO 9001 certification since 1998
Yearly client satisfaction surveys with average high satisfaction score (above norm)
Pension Fund Governance Compliance Scans level 4,3 reached in 2010
Flexibilization of pension plans (parametric changes) at contract level
Annual Financial and Actuarial Reports delivered in 3 months with unqualified opinions
All policy papers are updated annually
Competencies VPM Personnel are constantly improved
Calculation models for DB and DC plans developed
12 different DB and DC pension plans available for clients
VPV, Reserve calculations and Annual Reports are produced internally
Applications Lifetime, Altair, Exact, AFAS, BPM one implemented and up to par
Mutations through WEB portal, downtime ICT low
Business Continuity Plan / IT performance scans complies with CBCS regulations
Sponsor and Participant Interface and Pension planner are available for clients
VPM holds regularly presentations to sponsors and participants at no cost to clients
ICT Infrastructure / Web Connectivity
Databases:
wi
Pensions
re
les
s
Payroll
General Ledger
Sponsor
Document
Management
es
re l
wi
Offside backups
E Commerce Park
Investments
s
Lease lines
Sponsor
Satisfied
Client
Core applications: Lifetime, Exact Globe, Altair, AFAS, BPM - One,
Microsoft Office, Database Oracle and SQL
ISO 9001 – 2008 Certificate
Vidanova Policies in place
•
5 year Business
Plans
•
5 year budget with
performance
indicators
•
Quality Handbook &
Process
descriptions
•
Code of Conduct
•
ABTN (actuarial
business plan)
•
Pension Fund
Governance policy
and scan
•
Asset Liability
Management
Studies
•
Risk Assessment
Paper
•
Investment Policy
(local &
international)
•
Asset Allocation
Studies
• ICT Information
Plan
•
Communication
Plan
•
Quality
Management
System
Note: All policy documents are updated on a regular basis
RBC Royal Bank
Commercial Banking
ASKA
Insurance NV
Investment
Manager/ Fund
Centrale
Hypotheek Bank
Custodian
BNY Mellon
LCG Associates
Global Investment
Advisors
Real Estate
KFRE
Joint ventures
Pension Funds
IFS
VIDANOVA
VIDANOVA’S STRATEGIC PARTNERSHIPS
Project
Development
VIDANOVA
Participants Development 1968 - 2012
Participants per category at the start of the fund in 1968:
Participants per Category December 31, 2012
Actives
Participants with deferred rights
Pensioners
Participants with disability pension
Widows and orphans
Junior participants
Total
Actives
Participants with Deferred Rights
Pensioners
Participants with Disability Pension
Widows and Orphans
BNP
267
6
29
3
15
101
421
Total
2,493
637
564
18
201
15
3913
Participants Growth
2013
4381 participants
2807 active
629 deferred
945 pensioners
Up to 2nd quarter
2013
137,2%
1997
1968
421
Participants
1846
Participants
Growth
1997 – 2013
Average 8,6%
Participants Development
4,800
4,200
3,600
3,000
2,400
1,800
1,200
600
0
97
98
99
00
Actives
01
02
03
04
05
Deferred rights
06
07
08
09
10
Pension recipients
11
12
13
Sponsors & Pension Plans
60
50
40
30
20
10
0
97
98
99
00
01
02
Sponsors
03
04
05
06
07
08
Pens. Arrangements
09
10
11
12
13
Premium Contributions
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
P…
12
13
Balance Sheet Development 1968 - 2012
Debit
Fixed Properties
Mortgages
Securities
Loans
Cash at banks
Interest
Current Account
ElecCoCuracao
Other debtors
Total
1,214
0.04
0.58
2.99
0.019
0.014
0.0017
0.0004
4.855
Assets
Credit
Premium Reserves
Disability Reserves
Current account OGEM
4.366
0.103
0.386
Total
4.855
Liabilities
Fixed assets
Investments
Receivables
Liquid assets
2.713
656,327
10,896
53,905
Total Fund Assets
723,842
Fund Capital
Reserves
Provision DB plans
Provision DC plans
Other liabilities
Minority interest KFR
Loans KFR
Total Capital and Liabilities
0.1
89.168
598.273
26.125
2.138
3.954
4.084
723,842
Assets Growth Vidanova
235,8%
1997
1968
4,8
million
223,9
million
In ANG.219.1 million
Growth
1997 - 2013
In ANG.528,1 million
Average growth PY: 14,74 %
2013
752,1
million
Pension Assets and Liabilities
Asset to Liability Ratio
134%
126%
118%
110%
102%
94%
86%
79%
71%
63%
55%
47%
39%
31%
24%
16%
8%
0%
‘97
‘98
‘99
‘00
‘01
‘02
‘03
‘04
Funding Ratio
;05
‘06
‘07
‘08
‘09
Minimum ratio
‘10
11
12
13
Invested Assets (Local and International)
800
700
600
500
400
300
200
100
0
1998
1999
2000
2001
2002
2003
2004
Local
2005
2006
2007
International
2008
2009
2010
2011
2012
2013
Investment Review for Vidanova
AssetAllocation – Combined Portfolio
Target
June 30, 2013
U.S. Equity
10.0%
U.S. Equity
8.6%
Non-U.S.
Equity
15.7%
Non-U.S.
Equity
15.0%
Local
Portfolio
50.0%
Fixed
Income
12.1%
Local
Portfolio
50.4%
Other Fixed
Income
4.4%
Fixed
Income
20.0%
Real Estate
2.5%
Absolute
Return
2.5%
Cash &
Equivalents
4.5%
Real Estate
0.6%
Absolute
Return
Asset 1.9%
Allocation
1.8%
INDEXATION
1988 - 2013
LT Average indexation 2,4%
Indexation Example Vidanova
Year
Pension PM Index %
After
1988
1,000
1989
5.00
1990
4.00
1991
5.00
1992
1.70
1993
1.90
1994
2.50
1995
1.70
1996
10.00
1997
3.50
1998
3.00
1999
2.00
2000
3.75
2001
2002
2003
1.33
2004
2.37
2005
2.27
2006
1.58
2007
2.87
2008
2009
0.91
2010
1.70
2011
2012
2013
1.40
Increase
77.30
Index
1,050
1,092
1,147
1,166
1,188
1,218
1,239
1,363
1,410
1,453
1,482
1,537
1,537
1,537
1,558
1,594
1,631
1,656
1,704
1,704
1,719
1,749
1,749
1,749
1,773
773
Development AOV Married Couples
AOV uitkering Gehuwd
2000
1800
1600
1400
1200
1000
800
600
400
200
0
AOV uitkering Gehuwd
LONG TERM AVERAGE INDEXATION
per year
1968 - 2013
Premium & Pension Prognosis
2010 - 2026
50000000
45000000
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
LOP in ANG
Premium
How Vidanova adds value?
1.
2.
3.
4.
By distributing all net fund returns to clients;
By improving pension arrangements as we grow stronger;
Through its indexation policy for actives / non actives;
By continuously focusing on improving efficiency defined as cost as % of
total cost and our service (timely and accurate);
5. Through favorable reinsurance contracts for risk coverage;
6. Through strategic alliances with commercial partners;
7. By providing an Employers and Participants Interface and a pension
planner;
8. By investing in the local economies which help create jobs and stimulates
economic growth;
9. Through participation of sponsors and participants in the funds board;
10.By providing timely and accurate pension statements and transparent
reporting of the funds performance to all stakeholders.