PensionDanmark to focus on low cost due to prospect of ‘moderate’ returns

PensionDanmark has said it will be focusing on low costs for customers due to the prospect of “moderate returns” in the coming years, despite reporting a strong return for 2019.

Publishing its results, PensionDanmark said it was one of the best investment returns in history, returning 16.1 per cent for younger members and 9.5 per cent for older members. From 2009 onwards, younger members have received an average annual return of 9.4 per cent, while older members have received an average return per year of 7.6 per cent.

In total, it made a return on investment of DKK 28.8bn, contributions of DKK 13.5bn and benefits paid of DKK 7.5bn. PensionDanmark’s balance sheet reached DKK 271bn.

Commenting, PensionDanmark CEO, Torben Möger Pedersen, said: “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.”

As well as publishing its results, Möger Pedersen said for the first time PensionDanmark has published key figures for environmental, social and governance (ESG) in compliance with the recommendations launched in June last year by FSR – Danish Auditors, Nasdaq and CFA Society Denmark. It has included audited ESG figures in its annual report

“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,” he said. “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.”

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