EDHEC-Risk Concept Industry Analysis Featured Analysis Latest EDHEC-Risk Surveys Features Interviews Indexes and Benchmarking FTSE EDHEC-Risk Efficient Index Series FTSE EDHEC-Risk ERAFP SRI Index EDHEC-Risk Alternative Indexes EDHEC IEIF Quarterly Commercial Property Index (France) Hedge Fund Index Research Equity Index Research Amundi "ETF, Indexing and Smart Beta Investment Strategies" Research Chair Rothschild & Cie "Active Allocation to Smart Factor Indices" Research Chair Index Regulation and Transparency ERI Scientific Beta Performance and Risk Reporting Hedge Fund Performance Performance Measurement for Traditional Investment CACEIS "New Frontiers in Risk Assessment and Performance Reporting" Research Chair Asset Allocation and Alternative Diversification Real Assets Meridiam Infrastructure/Campbell Lutyens "Infrastructure Equity Investment Management and Benchmarking" Research Chair Natixis "Investment and Governance Characteristics of Infrastructure Debt Instruments" Research Chair Société Générale Prime Services (Newedge) "Advanced Modelling for Alternative Investments" Research Chair CME Group "Exploring the Commodity Futures Risk Premium: Implications for Asset Allocation and Regulation" Strategic Research Project Asset Allocation and Derivative Instruments Volatility Research Eurex "The Benefits of Volatility Derivatives in Equity Portfolio Management" Strategic Research Project SGCIB "Structured Investment Strategies" Research ALM and Asset Allocation Solutions ALM and Private Wealth Management AXA Investment Managers "Regulation and Institutional Investment" Research Chair BNP Paribas Investment Partners "ALM and Institutional Investment Management" Research Chair Deutsche Bank "Asset-Liability Management Techniques for Sovereign Wealth Fund Management" Research Chair Lyxor "Risk Allocation Solutions" Research Chair Merrill Lynch Wealth Management "Risk Allocation Framework for Goal-Driven Investing Strategies" Research Chair Ontario Teachers' Pension Plan "Advanced Investment Solutions for Liability Hedging for Inflation Risk" Research Chair Non-Financial Risks, Regulation and Innovations Risk and Regulation in the European Fund Management Industry Index Regulation and Transparency Best Execution: MiFID and TCA Mitigating Hedge Funds Operational Risks FBF "Innovations and Regulations in Investment Banking" Research Chair EDHEC-Risk Publications All EDHEC-Risk Publications EDHEC-Risk Position Papers IPE EDHEC-Risk Institute Research Insights AsianInvestor EDHEC-Risk Institute Research Insights P&I EDHEC-Risk Institute Research for Institutional Money Management Books EDHEC-Risk Newsletter Events Events organised by EDHEC-Risk Institute EDHEC-Risk Smart Beta Day Amsterdam 2017, Amsterdam, 21 November, 2017 EDHEC-Risk Smart Beta Day North America 2017, New York, 6 December, 2017 Events involving EDHEC-Risk Institute's participation EDHEC-Risk Institute Presentation Research Programmes Research Chairs and Strategic and Private Research Projects Partnership International Advisory Board Team EDHEC-Risk News EDHEC-Risk Newsletter EDHEC-Risk Press Releases EDHEC-Risk in the Press Careers EDHEC Risk Institute-Asia EDHEC Business School EDHEC-Risk Executive Education EDHEC-Risk Advances in Asset Allocation Blended Learning Programme 2017-2018 Yale School of Management - EDHEC-Risk Institute Certificate in Risk and Investment Management Yale SOM-EDHEC-Risk Harvesting Risk Premia in Alternative Asset Classes and Investment Strategies Seminar, New Haven, 5-7 February, 2018 Investment Management Seminars Contact EDHEC-Risk Executive Education Contact Us ERI Scientific Beta EDHEC PhD in Finance
Institutional Investment - May 22, 2008

Interview with Theo Jeurissen

In this month's interview, we speak to Theo Jeurissen, Chief Investment Officer, PMT and Chairman of the EDHEC Risk and Asset Management Research Centre's International Advisory Board about the regulatory and business challenges facing European institutional investors.


Theo Jeurissen

You have recently accepted the chairmanship of the EDHEC Risk and Asset Management Research Centre’s International Advisory Board. Could you tell us how you came to be interested in EDHEC’s research and why you agreed to take up this position?

Theo Jeurissen: In my working life as a professional investor I have always tried to underpin investment decisions with academic research. During, let’s say, the last five years, EDHEC’s research centre has proven to be very valuable in this respect, because it provides state-of-the-art research about current topics. In return I hope that the advisory board can contribute to the relevance of the centre’s activities and that in my role I can help to create a meeting point between the worlds of investing and science.

As chairman of the investors committee of the Dutch association of pension funds, you have been ideally placed to assess the regulatory and other challenges faced by European pension funds. One of the themes at next month’s EDHEC Institutional Days in Paris will be whether short-term prudential constraints endanger long-term investment objectives. What is your view on this question?

Theo Jeurissen: I suppose it is too simple to state that regulatory constraints endanger long-term objectives. There has always been and there will continue to be a tension between the need for capital preservation and the need for real returns in the long run. Recent changes in regulations have rightly brought this issue to the front. Care should however be taken that in a highly dynamic world regulations leave enough room for a flexible response if needed.

As head of investments with the largest private sector pension fund in the Netherlands, you are also a key observer of the non-regulatory challenges ahead. What do you think the main issues will be over the next few years?

Theo Jeurissen: After decades of a favourable environment, which economists now label “the great moderation”, we have entered into a phase which poses bigger challenges to achieve adequate returns. A “blessing in disguise” from the present credit crisis is, that -I suppose- investors will have learned that simple ways, like using ever more leverage, are not sustainable. So we will have to dig deeper, if I may put it in those words. Innovative investments will become a bigger part of overall assets. Understanding and managing this type of investments will be a major issue over the coming years.

How do you think EDHEC’s research can help pension funds to cope with these challenges?

Theo Jeurissen: The EDHEC research centre is ideally placed to help pension funds to deal with new types of assets, because it understands the often complicated mathematical backgrounds of these assets, has the capability to make clear in which situations such assets can be of importance and, very important, has the experience to evaluate possible pitfalls in practice.



About Theo Jeurissen

Theo Jeurissen has been Director of Investments with PMT since 2001. He is responsible for the fund's investment policies and oversees the investments handled by PMT's management company.

He has been involved in the investment world for over 20 years. Before joining PMT, he worked in the investment department of ABP, the Dutch civil-service pension fund. As a member of ABP's Board of Directors, he was responsible for equity management and investment policy development. He has also held several other posts, including Chairman of the Investors' Committee of the Dutch Association of Industry-wide Pension Funds.

Theo Jeurissen is Chairman of the EDHEC Risk and Asset Management Research Centre's International Advisory Board.