The first portfolio is exclusively invested in stable equities, i.e. companies with stable, non-cyclical earnings. In 2020, stable equities accounted for up to 40% of the overall equity investments of PensionDanmark’s older members, who have shorter investment horizons than younger members and therefore a greater exposure to major short-term equity market setbacks.
By comparison, stable equities accounted for just over 20% of the overall equity portfolios of members under the age of 55.
This part of the equity portfolio is more market orientated. The portfolio is divided into a number of internally and externally managed sub-portfolios, which are managed on the basis of various investment approaches. For instance, some portfolios focus on identifying companies with substantial growth potential, while others focus on identifying undervalued companies.