The objective is to have an investment strategy which safeguards our members’ interests in the best possible way in consideration of legislation, responsibility and risk profile.
P+ invests according to the overall investment policy and guidelines which are decided by the Board annually and which the asset management is subject to. The pension fund is governed by the Danish Financial Supervisory Authority’s requirements to the Prudent Person principle, and the investment policy and guidelines are determined in accordance with the restrictions and regulations in the Danish Financial Business Act.
The investment policy and guidelines are framed on basis of the Board’s risk appetite and request for adequate risk diversification. The strategic allocation of the asset classes – bonds, equities, credit bonds and real assets – is a central component to ensure diversification of risk and achieve a high return.
The pension fund also determines an accepted level of deviation within the respective assets classes in terms of duration, allocation to countries and hedging of currency risk. Furthermore, a benchmark is determined for each active class which performance is measured against.
P+ has adopted a responsible investment approach. Social and environmental considerations are along with costs essential when the pension fund invests the members’ savings. The purpose is to generate the highest possible risk-adjusted return.
P+ has placed a substantial part of the management with external portfolio managers.
Investment principles
P+ invests actively with focus on optimising the correlation of return, risk and costs. The pension fund invests according to the following three overall investment principles:
- Portfolio structure ensures that the investments are spread to several assets classes with different risk characteristics.
- Risk management ensures that the investment portfolio has the right level of risk relative to the risk tolerances determined by the Board.
- Focus on market opportunities ensures that the pension fund invests actively.
The purpose of the investment principles is to make sure that all P+’s investment decisions are embedded in one or more of these principles. The investment principles serve as a cornerstone when P+ invests for the purpose of meeting the investment objective of ensuring the members the highest possible pension in consideration of risk.