Danica Pension Praises Active Management After Average Return At Risk Of 9.5% | New


Danish company Danica Pension announced returns of between 5.2% and 12.2% for clients with its market rate product for 2020 as a whole, saying its active management and overweighting in Danish stocks has been negative. factors of success in an “extraordinary year”.

Poul Kobberup, CIO of Danica Pension, said: “Precisely in such an extraordinary year, where the waves are very high, it is important to be true to your strategy.

He said the current investment strategy of the DKK 450 billion (€ 60.5 billion) pension fund was introduced in early 2016, focusing, among other things, on internal asset management and increasing alternative investments.

Danica Pension, a subsidiary of Danske Bank, said its Danica Balance pension product at market rate generated a return of 12.2% for clients with a high risk profile and aged 30 to age retirement, while those at medium risk and 20 years ahead saw a 9.5% return in 2020.

Clients with five years before retirement age and a low investment risk profile achieved a return of 5.2% in 2020, the provider reported.

In its announcement, Danica Pension compared the annual returns to the 20% loss clients’ retirement accounts had at one point in March during the stock market crash as the COVID-19 pandemic escalated.

“As a pension company, we have used particularly active portfolio management, and in combination with dynamic risk management, this has produced good results for our clients,” Kobberup said, adding that 2020 had been the one of the most extraordinary years of his 30 years. as an investment professional.

“Danish stocks, as well as technology stocks, were the best performing assets in 2020, and here Danica’s clients have been rewarded by the fact that we have been very active in our ongoing stock selection and that we we had an overweight stance in Danish stocks, ”he said.

The pension provider said he expects 2021 to translate into positive returns for customers, despite current restrictions on coronaviruses: “We expect an economic recovery to accelerate in 2021 , strongly supported by coronavirus vaccines, which are being deployed around the world. right now, ”Kobberup said.

But he warned times remained very uncertain and the coronavirus still had the potential to create “a really sour mood” in financial markets.

If the restrictions were tightened or extended, Kobberup said the economic recovery risked “stalling”.

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