A good year for PensionDanmark’s members

For PensionDanmark, 2016 was characterised by an inflow of new members, higher pension contributions, solid returns and lower costs.

Click here for at more detailed view of the graphs.

Positive economic growth in Denmark is good news for PensionDanmark’s members. In 2016, it led to increasing staff numbers in the companies whose employees have pension schemes with PensionDanmark. The number of members covered by employer-paid pension schemes is now back at the pre-crisis level of almost ten years ago.

Contributions reached an all-time high of DKK 12.8 billion in 2016. Growing contributions and an excellent investment return of almost DKK 13 billion combined to send aggregate member savings above the DKK 200 billion mark.

”Providing our members with a solid return on their savings is a key responsibility for PensionDanmark. The very low level of interest rates has made this job all the more difficult over the past few years. We’ve addressed this challenge by stepping up investments in corporate bonds, private equity, infrastructure and real estate. Thanks to this strategy, our members receive solid, stable returns that rely less on developments in the world economy and equity markets,” said PensionDanmark CEO Torben Möger Pedersen.

PensionDanmark’s investments in real estate, private equity and infrastructure earned compelling returns of 9.6%, 10.4% and 10.9%, respectively, in 2016, taking the aggregate return over 7%.

”We’ve managed to reduce our already low administrative expenses thanks to digitalisation and automation of an increasing number of processes. At the same time, we’ve upgraded our member services through the introduction of new web solutions and very short call centre response times,” continued Torben Möger Pedersen.

Click here to read the annual report.

Financial highlights    
  2016 2015
Contributions, DKKbn 12.8 12.1
Return on investment assets before tax, DKKbn 13.0 7.1
Benefits paid, DKKbn 6.9 5.9
Total assets, DKKbn 221.5 199.8
Administration fee per member, DKK 289 305
No. of members at year-end 695,000 684,000
Return for the year before tax    
 

Actual return

Absolute return
  % DKKm
Market rate investments    
Equities 6.3 3,506
Corporate credit, EMD and direct lending 10.7 3,235
Danish government and mortgage bonds 5.3 2,408
Non-market rate investments    
Private equity 10.4 535
Credit funds 3.1 116
Infrastructure 10.9 1,976
Real estate 9.6 1,201
Total   12,977
Age pool returns    
Under age 41 7.1 -
Age 65 7.3 -

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