Investment Philosophy

PensionDanmark believe the best investment results are most likely to be achieved with a relatively small and focused investment team combined with a high degree of outsourcing to external managers.

PensionDanmark take well-considered investment decisions based on long term thinking and valuation. By nature our investment style is contrarian and value orientated.

PensionDanmark aim for an effective decision process based on a clear structure for responsibility and evaluation with well defined decision points. Risk is allocated based on a structured process of risk budgeting. The process allows for a detailed performance attribution analysis evaluating the performance of both internal and external decision takers.

Internal core activities

The allocation between asset classes is vital to returns as well as to risks. The most important core activities for the internal investment team are therefore:

• Strategic asset allocation and risk management 
• Tactical asset allocation
• Selecting and evaluating external managers and funds
  

Furthermore, a part of the equity portfolio and the fixed income portfolio are managed internally. The decision to manage part of the assets in-house reflects our belief in significant synergies between some internal management and delivering best practice when it comes to taking care of the internal core activities. Nevertheless, we will only consider internal management of mandates, where we feel confident, that we have the sufficient skills and resources.