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 55 have the majority of their savings invested in equities, non-investment grade fixed income and alternative investments.

When members turn 55 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 as well as real estate and infrastructure.

The figure below illustrates how the asset mix for each member varies depending on age and expected time to retirement.

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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.

Asset Allocation as of December 31, 2023

The table below gives a more detailed overview of the current asset allocation for members under the age of 46 and 67 years.

Assets (in percent) Members under the age of 46 Members at the age of 67
Global Equities 47,8 18,6
High Yield Bonds 4,5 9,8
Senior Bank Debt 3,5 8,3
Emerging Market Debt 4,4 5,0
Equities and Credit in Total  60,2 41,7
Private Equity 11,6 5,2
Mezzanine and Distressed Debt 2,8 2,8
Real Estate 8,3 11,4
Infrastructure and renewable Assets 6,8 10,9
Alternatives in Total  29,9 30,3
European Government and Mortgage Bonds  7,5 20,5
Index Linked Bonds 1,8 1,8
Investment Grade Corporate Bonds 1,0 5,7
Investment Grade in Total  10,3 28
Total  100 100