Asset Allocation

As of December 31, 2018 PensionDanmark had EUR 29bn under management. In the coming years the net inflow of pension contributions will amount to approximately EUR 1bn on an annual basis. By 2050 assets under management is expected to approach EUR 50bn.

Contrary to many Danish pension funds, 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.

The table below gives a more detailed overview of the current asset allocation for members under the age of 45  and 67 years.

Asset Allocation as of 1 January 2019

 Assets

Members under the age of 46

Members at the age of 67

 

Pct.

Pct.

Global Equities

44.8 16.6

High Yield Bonds

6.0 5.0
Senior Bank Debt  4.1 9.3

Emerging Market Debt

4.6 4.6
Equities and Credit in Total  59.5 35.5

Private Equity

5.6 2.1

Mezzanine and Distressed Debt

1.4 1.4

Real Estate

8.5 8.5

Infrastructure and renewable Assets

10.1 10.1
Alternatives in Total 

 25.6

 22.1

European Government and Mortgage Bonds 

10.2

36.3

Index Linked Bonds

4.0

3.0

Investment Grade Corporate Bonds

0.7

3.1

Investment Grade in Total 

14.9 42.4

Total 

100.0 100.0