Investment with VækstPension
You can see the funds you have in Netpension under Funds and return - the same information can be found under Investment in Mit Velliv. When you have under 15 years left until retirement, we will gradually start to reduce the risk exposure of your investment. The investment principle of VækstPension is simple and tailored to you: We take advantage of your chance of getting a high return while you are young and can tolerate a high risk.
When you approach retirement age, we gradually reduce the risk, secure your pension savings and ensure stability of your periodic benefits.
Automatic gradual reduction of risk
Risk and return go hand in hand: The higher the risk, the higher the potential return. You can read more about the investments in the four risk profiles.
The composition of funds depends on the risk profile you choose (Low, Medium, High or Guarantee), and on whether you want active or index-based management or aftryk based management of your investments.
More about risk profiles
How do we prioritise your investments under the different risk profiles.
Low Risk |
Medium Risk |
High Risk |
|
stable return, lower return potential |
stable return, increased return potential |
high return potential, increased risk of loss |
|
A relatively large part of your savings will be invested defensive in e.g. bonds. |
A moderate part of your savings will be invested defensive in e.g. bonds. | Up to 100 per cent of your savings will be invested in e.g. shares involving a higher risk. |
Since 1 January 2021, it is no longer possible to add an investment guarantee when setting up a new or changing the investment profile of an existing pension scheme. If you already have an investment guarantee, you are guaranteed at least the same amount as the amount paid in (excluding costs and any insurance payments). This also applies if you should die before you retire. Investments in VækstPension Garanti fond A are similar to investments in VækstPension fond 4 up until the gradual risk reduction begins, after which point the risk is gradually reduced up until and during retirement to a fund with 0% risk investments. The investment guarantee is taken into account when making the investments, which is why the share in high-risk investments may be changed.
Aktiv, Index or Aftryk
The difference between the investments in Aktiv (Active), Index and Aftryk (‘Aftryk’ is a Danish word that can be translated as ‘footprint’) is the risk diversification of the investments and the day-to-day attention paid to individual investments.
Aktiv management
Choosing Aktiv investment management gives you the best risk diversification and good opportunities for a high return. Our investment experts monitor the market, select the individual securities (for example, shares in specific companies) and regularly evaluate the composition of the investments (for example, shares, bonds, real estate, alternative investments, etc.) In addition, you will get access to attractive investment types which private individuals would not otherwise be able to invest in.
Index management
Index-based investments are based on listed stocks and bonds. The portfolio automatically tracks a range of the most widely used stock and bond indices globally, while taking into account Velliv’s policy on responsible investment and active ownership. The equity component is invested globally and consists of four segments: Global Large Cap, Global Small Cap, Emerging Markets and Danish equities, providing geographic and sectoral diversification. The bond component is also globally exposed to a range of different types of bonds, including government and mortgage-backed securities, corporate bonds, emerging market bonds and inflation-linked bonds. This approach results in lower investment costs but also reduced risk diversification. Furthermore, you will forgo the potential additional return that can be achieved through an actively-managed pension savings scheme.
Aftryk management
VækstPension Aftryk has a global investment focus, and as such, it is based on a broad investment universe across asset classes. When Velliv selects the investments to be included in VækstPension Aftryk, we conduct a thorough analysis of each investment opportunity. Our sustainability analysis is tailored to the specific asset class, as access to relevant information and data can vary. We continuously improve our selection process to take this into account. When selecting our external partners who manage investments on behalf of Velliv, we conduct a thorough analysis of their approach to sustainability. We look at, among other things, their organisational setup for sustainability, how they have integrated sustainability into their investment process and their reporting on this area.
Investment strategy
With VækstPension, we want to provide solid, long-term returns at no unnecessary risk. Our investment strategy for VækstPension is based on our notion of how we provide the best long-term investment return:
Long-term view
VækstPension has a long investment horizon. That is one of the strongest options you have as an investor. You can stay cool and avoid getting carried away by the news flow.
Active management
The investment strategy is also based on the conviction that active investment provides a better return than generally generated by the marked. The strategy is managed and implemented by our team of investment experts. They are highly specialised in different parts of the capital markets and have extensive experience with investment.
Velliv's investment experts constantly consider return potentials and risks, and take action if deemed relevant, to ensure that the portfolio has the optimum composition at all times.
Humility
We use external advisers to ensure market-leading asset management within highly specialised parts of the portfolio, e.g. emerging markets, High Yield and Small Cap. We select and monitor the external advisers in cooperation with the expert team in Nordea. They have some of the best resources in the market.
Strong risk management
Our investment team has shown that it is possible to beat the market. Predicting future returns involves a high degree of uncertainty. But what we can do is manage our risks. Our investment team uses leading analytic tools to measure and manage the risk of the portfolios. This widely explains the good balance between risk and return we have delivered historically.