Denmark's AP Pension has added four new index funds to its self-selected investment range, in a move designed to give pension customers more flexibility over how their retirement savings are invested.

The pension provider said the new funds would strengthen its self-selection universe by offering customers exposure to global, European, US, and emerging market equities.

The four funds, managed by Sparinvest, are Sparinvest INDEX MSCI ACWI, which provides broad exposure to global equities across developed and emerging markets; Sparinvest INDEX STOXX Europe 600, which provides exposure to a broad range of European stocks; Sparinvest INDEX S&P 500, which provides exposure to large listed US companies; and Sparinvest INDEX Emerging Markets KL, which provides exposure to shares in emerging markets.

The new funds each have annual costs of 0.34 per cent.

AP Pension noted that many customers continue to prefer the provider to manage their investments and adjust risk on their behalf, while others want to take a more active role in deciding how all or part of their pension savings are invested.

The new index funds are aimed at customers in the latter group, providing broader options for those who want to build their own investment mix.

Index funds broadly track a specific market or stock index, rather than relying on a manager to actively select companies expected to outperform.

AP Pension explained that this can provide customers with a simple and transparent way to achieve diversification across many companies, while costs are often lower than in actively managed funds.

AP Pension investment director, Pernille Jessen, said the launch forms part of the provider’s work to give customers more choice without unnecessarily complex investment decisions.

“Customers should have the opportunity to choose the investment solution that best suits them,” she continued.

“For many, the right choice is for us to invest their savings for them. But some customers would like to take a more active position on some of their investments.

“For them, we need a selection that is simple, relevant and easy to understand. We are now strengthening this with four new index funds.”

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