Danish pension provider PenSam made a return of 14.6 per cent before tax on its Fleksion product, which it said is what the majority of its customers invest in.

PenSam CEO Torsten Fels noted that there can be big differences on returns between years so “companies’ ability to provide good returns for customers' pension savings must be assessed over a number of years”.

“Measured over the past three years, Fleksion has achieved a return of 24.8 per cent, “ he said. “This return is one of the best in the industry, and we are very proud of it.”

The strong return on investment means that PenSam paid another DKK 7.3bn on collective bonus for members, which now amounts to DKK 19.9bn in total. Total pension wealth grew from DKK 139.7bn to DKK 155.4bn.

Administration costs for its customers amounted to DKK 437, but it aims to reduce these to DKK 400, as it believes “low administration costs remain an important parameter for ensuring good pension savings”.

In addition, PenSam said that it has chosen to focus on the United Nation’s global goals when it comes to investing for its customers, specifically on labour rights, inequality, tax and climate change.

“PenSam has a strong focus on sustainability, and we are among the advocates of the Danish pension industry when it comes to climate action. We have made several green investments, measured the carbon footprint of our investments and influenced the companies that are going in a more climate-friendly direction,” Fels said.

Within its investment strategy, PenSam has transitioned to a climate-friendly benchmark for its equity portfolio.

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