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Portfolio information

In P+ we have chosen a robust portfolio consisting of many different assets.

In P+ you get a robust portfolio consisting of many different assets which spans investments in equities, bonds and real estate etc. The purpose is to ensure a good return/risk balance in different market trends.

The majority of the pension fund's members have their savings invested in P+ Balance. The product consists of a well-diversified portfolio with a modest risk and expected return where the risk profile remains the same throughout the entire life.

Members of P+, former JØP, Afdeling 1 with guaranteed benefits and members under P+, former DIP Regulations 1 and 2 have their pension savings in P+ Grundlag. The investment strategy for P+ Grundlag is based on a high level of security to ensure payment of the guaranteed benefits. Accordingly, P+ Grundlag only consists of mortgage bonds and special secured loans. 

P+ Aktiemax and P+ Obligationsmax apply to members under P+, former DIP Regulations 4. P+ Aktiemax consists mainly of listed equities, but also investments in unlisted companies, real estate and infrastructure which can contribute to a high return. 

P+ Obligationsmax consists mainly of bonds and small share of e.g. corporate bonds, real estate, offshore wind parks, solar cell panels etc.

P+ Life cycle is a new market rate product which gives you the possibility of chosing the risk profile that matches your life situation.


All new members are admitted under P+ Life cycle from 1 November 2021. We expect that the first existing members are contacted from summer 2022 with the offer to opt for P+ Life cycle. You will get a letter in e-Boks.


With P+ Life cycle you can choose between three risk profiles: Low, Middle and High. The more risk you take, the higher pension benefits you may get, but you must also expect larger fluctuations with a high profile. 

In principle all new members are admitted with Middle risk. On Min pension you can choose another risk profile and be guided about which risk profile that suits you. 


Regardless of the risk level that you choose, we are gradually reducing the investment risk from you reach age 54 and until you start payment of your pension benefits. The gradual reduction is made to reduce the risk of your savings being significantly affected if the financial markets develop negatively in the years before you retire, or while you are receiving pension benefits. This way P+ Life cycle provides the possibility of obtaining a higher return when you are young, and at the same time reducing the risk of large fluctuations in the years before you retire, and while you are receiving pension benefits. 


The risk profiles are composed of investments from 2 funds, A and B. Fund A includes the most equity risk, while Fund B includes the most interest rate risk. This also implies that Fund A has a risk labelling of 5.9, while Fund B has a low risk labelling of 1.9. You can read more about risk labelling here


The value of the funds are determined on basis of the market value of the underlying assets according to the fair value principle. 


Payments made are normally traded within 5 banking days and at the latest 20 days after P+ has received the payment. Received payments that are not yet traded are paid an interest rate determined by P+. The interest rate is 0 percent at present. 


In below table you can see the strategic asset allocation of the different investment products. For P+ Life cycle you can see the 3 risk profiles for members who have 15 years until retirement.


The exposure of the individual investment profiles does not total 100 percent, as the pension fund uses cost effective financial instruments for the purpose of obtaining the wanted risk level.


The actual asset allocation may deviate from the strategic asset allocation within the framework decided by the Board. Depending on the market conditions there may be periods when some asset classes are more or less attractive to invest in. 

Asset classes

Below you can read more about the asset classes.

Government bonds and mortgage bonds are characterized by being very secure investments with a high credit rating, but also an expected low return. It can be both Danish and foreign bonds, but they must be from developed countries with a good rating (≥BBB-). The duration is approx. 6 years.


Bonds often serve as a good insurance in bad times when the equity markets are struggling. They have well-diversified characteristics, and they increase the robustness of an investment portfolio and even out fluctuations with time. 


Investment grade bonds are corporate bonds with a relatively high credit rating (≥BBB-). They serve well in an investment portfolio because of their attractive return/risk correlation. Generally, investment grade bonds involve a higher degree of risk compared to government and mortgage credit bonds, however, not as much as High yield bonds (see below).

There are both liquid and iiliquid investment grade credit, where the liquid investment grade credit is relative easy to trade, while the illiquid investment grade credit is more difficult to trade. 

High yield bonds are corporate bonds with a low credit rating (≤BBB-). High yield bonds are also described as ‘junk’, however, this is not quite accurate, as high yield bonds simply are speculative or riskier bonds. 

It might be illiquid investments which are difficult to realise in a falling market. Examples are senior bank loans, credit derivatives, CLOs, structured credit and loans to infrastructure projects, real estate projects or companies in distress. High yield bonds are characterized by an attractive return, but also a high risk and are legitimate in a robust investment portfolio due the correlation between return and risk.


There are both liquid and iiliquid investment grade credit, where the liquid investment grade credit is relative easy to trade, while the illiquid investment grade credit is more difficult to trade. 

Bonds from developing countries typically have a lower credit rating than bonds from developed countries, and it is the sovereign risk that the pension fund as an investor is paid for. Bonds in this category typically generate a high return, but they do not provide 'protection' in a time with e.g. a substantial fall in equity prices. 


Emerging Market sovereign bonds can be issued in either EUR or USD (hard currency) or in the individual country’s local currency. As the different countries’ economies are maturing, the emerging market countries are increasingly issuing their bonds in local currency. When P+ invests in local currency, the pension fund is exposed to currency risk.

Listed equities from developed countries typically constitute a substantial part of an investment portfolio. Equities are basically an ownership interest in a limited company.

Equities are somewhat riskier compared to bonds, on the contrary they generate a higher return long-term. Accordingly, equities are well suited for investments for a pension fund which has long-term commitments.


The return on equities is paid in the form of dividends and market value adjustments. Equities from developed countries are very liquid and easy to trade in a cost-effective way. Accordingly, they are suitable for controlling the tactical risk on the portfolio.

Throughout the past decades, listed equities from developing countries have become an increasingly important element in a well-diversified investment portfolio. The return is expected to exceed the return of equities from developed countries, but the risk is also considerably higher.

It is expected that the developing countries will catch up with the developed countries with time which must be reflected in the equity prices. However, the political risk is essential and might from time to time overshadow the positive underlying tendency. In times with market instability, equities from developing countries are extremely vulnerable. 

Unlisted equities are attractive due to the illiquidity premium which can be gained by tying up capital in funds that develop companies in a short period. Unlisted equities are expected to generate a higher return than listed equities. As an investor you can typically not withdraw your money from the fund, and the only possibility is to sell the ownership interest with a large discount. This is not desirable, and accordingly you must be certain that you can keep the investment until maturity.

Unlisted equities typically involve a high risk, but it is often difficult to measure this risk precisely. The predominant part of the capital funds are geared which increase the risk. Private equity belongs to the category Alternative investments.

Infrastructure is attractive due to the illiquidity premium which can be gained by tying up capital in construction projects which give a stable cash flow. Infrastructure is expected to generate a higher return than bonds, but lower than e.g. unlisted equities. As the turnover rate on infrastructure is low, it can be difficult to calculate the true risk, but the price typically drops in times with recession. Infrastructure is a relatively broad category consisting of e.g. energy and water supply, transportation, social and digital infrastructure, communication and forest. 

Forest investments can be attractive in a broad-based portfolio and contribute to stabilising the return. They are not affected by fluctuations on the equity markets and driven by other factors than real assets in general. When the pension fund invests in forest, it is done through forest funds together with other investors. 

Real estate includes residential and commercial properties, building sites etc. The return on real estate investments is generated from surplus related to renting and value increases. Real estate investments protect against inflation, as both rentals and property value tend to follow the ordinary development in prices and wages.

P+ invests primarily in real estate through funds which ensures a diversifaction to both property types, countries, continents and risk. The directly owned properties are managed in cooperation with DEAS.

Hedge funds are a broad category of managers who often search for a high risk-adjusted absolute return. This is the opposite of traditional funds which typically benchmark themselves compared to the market – e.g. an equity or bond index – which they try to outperform.


Despite the name, a hedge fund does not necessarily need to hedge, and there is no precise definition of a hedge fund.

There might be a number of advantages by investing in hedge funds as you as an investor can obtain an exposure and return which you cannot generate yourself. Hedge funds often seem to be costly, but this is often evened out by a high return. It might make sense to have hedge funds in an investment portfolio as the risk often differs from the traditional asset classes.