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Strong Financial Report from PensionDanmark

High investment returns and low costs secured members a record high increases in their savings in 2019. With the prospect of more moderate returns in the coming years, low cost will be key to maintaining high customer satisfaction. As the first pension fund in Denmark, PensionDanmark publishes audited ESG key figures in the Annual Report.

2019 provided one of the best investment returns in the history of PensionDanmark, who thereby demonstrates solid investment returns for ten of the eleven years since the financial crisis.

In 2019, younger members received a return of 16.1 per cent while older members received a return of 9.5 per cent. From 2009 onwards, younger members received an average annual return of 9.4 per cent, while older members received an average return per year of 7.6 per cent.

“Our mission is to provide our more than 750.000 members with good investment returns, which makes 2019 a really good year. A high degree of digitalisation and use of robotics in our customer service help keep our costs down. Low costs will become even more decisive in the coming years, where we expect investment returns to be more moderate,” says PensionDanmarks CEO Torben Möger Pedersen.

With a return on investment of DKK 28.8bn, contributions of DKK 13.5bn and benefits paid of DKK 7.5bn, PensionDanmarks balance sheet reached DKK 271bn.

“PensionDanmark takes on social responsibility and publishes, for the first time, key figures for ESG (Environment, Social and Governance) in compliance with the recommendations launched in June last year by FSR – Danish Auditors, Nasdaq and CFA Society Denmark. As the first pension fund in Denmark, PensionDanmark have in-cluded the ESG key figures in our Annual Report and they are therefore audited,” says Torben Möger Pedersen and continues:

“We document that we have reduced the carbon footprint in our investment portfolio to a degree, that the CO2 reduction from our investments in renewable energy infrastructure is now tree times greater than the total CO2 emission from our listed equity portfolio.”

“It is also satisfying that our gender equality policy has lifted the proportion of women in the group of managers from 30 per cent in 2015 to 45 per cent in 2019.”

In PensionDanmarks Corporate Social Responsibility Report 2019 it is among other topics shown, that:

  • PensionDanmark co-founded a global investor alliance with USD 4,000bn under management working towards carbon-neutral investment portfolios,
  • The Danish pension industry commits to invest DKK 350bn in green transition by 2030,
  • PensionDanmark owns production of 3,665 GWh of green energy per year,
  • Our members received 370,000 interdisciplinary healthcare treatments at PensionDanmarks health care centers,
  • More than13,200 logins at our new supplementary training site.

Read an extract of the annual report here.

Listen to PensionDanmarks CEO talking about the annual report (texted in english).

Read the corporate social responsibility report here.