PensionDanmark is working without guaranteed minimum yields, which enables us to invest with a long term horizon to the benefit of our members.
Investments are managed in a lifecycle product
Members under the age of 46 have the majority of their savings invested in equities, non-investment grade fixed income and alternative investments.
When members turn 46 years of age, their savings are gradually switched into more conservative and less volatile holdings, as they approach their retirement age. These holdings are European government and mortgage bonds and investment grade corporate bonds.
The figure below illustrates how the asset mix for each member varies depending on age and expected time to retirement.
Detailed Asset Overview
As members approach retirement age they gradually decrease their exposure, especially in regards to equities. Less volatile investments in credit, real estate and infrastructure are held at a constant, until they have reached retirement.