Editorial Board Spotlight: Up close and personal with Thijs Aaten
As the Asia CEO of APG Asset Management, Thijs Aaten combines a deep understanding of financial stewardship with an innovative approach to leadership to oversee the €577 billion ($643 billion) Dutch pension giant's presence in the region.
APG Asset Management
Aaten's journey is rooted in an unlikely background: his father owned and operated a dairy farm in the Netherlands, and he was the first in his family to attend university.
"After primary school, I rushed home to help tend to the cows and check on the sheep," Aaten told AsianInvestor.
This down-to-earth upbringing instilled in him a strong work ethic and a can-do spirit that has served him well throughout his career.
It also taught him about the importance of taking care of one's assets and doing what needs to be done to preserve and nurture them.
"If a sheep is on its back, it can't get up on its own feet, so if you don't help it, it will die. You need to check on the sheep on a regular basis,” he said.
PROTECTING THE POT
At the heart of Aaten's work is a fierce commitment to not just growing the pension fund but also ensuring it is fully protected.
"This job combines different interests. It has a quantitative elements, but there's also game theory involved. If you're not aware, some players may end up taking advantage,” said Aaten.
Consider counterparties in financial transactions, for example, banks.
"You need technical expertise to understand the models and pricing mechanisms. When a counterparty quotes a price, you can't simply rely on their assurance that it's fair or good.
"Given the substantial amounts of money involved, it's crucial to verify and double-check these prices independently," he said.
There is also a strong awareness of the real-world impact of the pension fund manager's financial decisions.
"Keep in mind that the average pension we pay is €800," he points out. "So if we do such a large transaction, and somebody makes a couple of million because we did not pay attention, that's a lot of monthly pension payments."
“Therefore, you have to be as informed as the guys sitting on the opposite side of the table. I always say, ‘Your banker is not your friendly advisor, they're your counterparty.’"
MISCONCEPTIONS
Despite his position as Asia CEO, Aaten is quick to dispel any notions of autocratic power.
"My son thinks that I'm being carried around on some kind of throne, but that couldn’t be further from the truth," he said, highlighting a common misconception about executive roles.
In reality, Aaten's job involves a delicate balance of negotiation and consensus-building.
"In a Dutch firm if you want to make changes or if you want to do things differently, that involves a lot of work to make sure that all important stakeholders are convinced on the idea," he said.
This collaborative approach is embedded across divisions and departments in the organisation.
"Being a CEO doesn’t give you full authority to do what you want, and nor should it. Especially when working for a civil servants pension fund," Aaten emphasises. "There are lots of considerations and stakeholders to whom you have a duty."
It also means that swift action isn't always possible.
“Even if it is the right action to take, I can’t always direct instructions and see them immediately executed,” he said.
Aaten's role undoubtedly is a constant juggling act. He must not only gain consensus from stakeholders and regulators but also ensure that his teams on the ground are aligned and able to execute.
"You're constantly considering all sides," as he puts it, "making sure you have consensus from stakeholders - whether it's regulators or the board. But then also that you go back and make sure the teams can execute on that."
It's clear that Aaten's role demands a nuanced approach to leadership, blending strategic vision with the ability to build consensus and drive execution.
Within the proverbial flock Aaten now oversees as CEO, he certainly ensures no sheep is left on its back – be it pensioners or any other stakeholders.