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.
Invested in more than 1,000 different companies across several geographies and sectors, the second equity portfolio is much more diversified.
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.
In spring 2020, PensionDanmark established two new equity portfolios focused solely on investing in companies committed to solving the global challenges defined in the UN Sustainable Development Goals and to contributing to the green transition.