Årsrapport 2022 godkendt 7. marts 2023 (eng) - Flipbook - Side 10
INDUSTRIENS PENSIONSFORSIKRING A/S ANNUAL REPORT 2022
Increasing interest rates and lower risk tolerance
among investors added to lower valuations in
the venture market. The buy-out market is
dominated by established companies with more
stable cash flows and earnings, and it is primarily
driven by changes in company earnings.
However, venture and buy-out together ended
the year with a negative return.
Investments in infrastructure, which are both
through funds and through direct investments,
generated a total return of 17.9%. In general,
INVESTMENT ACTIVITIES
there were good returns on infrastructure assets
within all sectors, but energy infrastructure stood
out in particular with high returns; primarily due
to the increasing energy prices. The increasing
interest rates in 2022 have also had a negative
impact on the valuation of infrastructure and
properties.
Although increasing interest rates for
infrastructure assets were more than
outweighed by positive factors, they were a
significant part of the reason for the negative
return for properties of -6.9% in 2022. The
Danish part of the portfolio amounted to DKK 6.3
bn. of the almost DKK 11 bn. invested in property.
Other credit (DKK 14.9 bn.) is investments
through funds that primarily focus on variableinterest unlisted corporate loans. These
investments yielded a return of 2.0% in 2022.
Investments have benefited from the variable
interest rates on loans and therefore they have
not incurred losses as a consequence of the
increasing interest rates.
Good returns over 10 years
Despite the negative result in 2022, over the
past 10 years, investment assets have yielded an
average annual return of 6.5% after costs.
Figure 1 Returns before tax for the past 10 years
16,8%
17%
Historically, this has secured members some of
the highest returns in the pensions sector,
despite very different developments in the
financial markets, with significant rises and falls.
Investment costs
Investment costs were 0.8% of assets in 2022,
which is higher than in 2021, primarily because
the principles for calculation applied by the
sector have been changed after the previous
rates were considered out-of-date. Unlisted
shares have been impacted particularly severely
by costs. Investment costs vary considerably
across asset classes and they are highest for
unlisted investments. The return for the year of 6.5% is after costs incurred.
Table 8 Investment costs in 2022 by type of assets
12,0%
11,0%
12%
Asset type
Gilt-edged bonds
8,2% 8,2%
7%
6,7%
5,1%
2%
-3%
-8%
-1,0%
-6,5%
20.4
0.08
1.36
Investment-grade corporate bonds
24.6
0.33
High-yield corporate bonds
45.7
0.43
Emerging-market bonds
94.6
0.45
Danish shares
38.4
0.24
Foreign shares
213.3
0.43
Unlisted shares
712.0
2.14
Properties (core)
11.1
0.17
Properties
79.2
1.63
Infrastructure (core)
15.2
0.26
302.8
1.84
11.5
1.14
Infrastructure
Other strategies
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
%
186.2
Other credit
6,7%
DKK mill.
Unallocated costs*
Total investment costs
15.7
-
1,770.8
0.80
* Unallocated costs include rent, costs of liquidity and derivatives, including TAA and SAA
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