annual report 2020 - Flipbook - Side 11
INDUSTRIENS PENSIONSFORSIKRING A/S ANNUAL REPORT 2020
these. However, investments in Danish
properties are direct investments. The same
applies for long-term investments in a number of
infrastructure assets with stable and predictable
cash flows. Investments of this type are carried
out in collaboration with local partners who help
identify, measure, monitor, and manage current
risks in the investments.
INVESTMENT ACTIVITIES
of long-term stable high returns. Over the past
10 years, investment assets have yielded an
average annual return of 7.3% after costs.
Historically, this has secured members some of
the highest returns in the sector, despite very
different developments in the financial markets,
with significant rises and falls. Lower returns are
expected in the years to come.
High returns over 10 years
Investment costs
With a return of 5.1% in 2020, Industriens
Pension succeeded in maintaining its objective
Investment costs represented 0.70% of assets in
2020. This is slightly lower than in 2019.
Figure 1
Returns before tax for the past 10 years
14%
12,9%
Investment costs in 2020 by types of assets
Asset type
DKK mill.
%
Gilt-edged bonds
30.0
0.08
Other credit
72.0
1.00
Investment-grade corporate bonds
33.1
0.32
High-yield corporate bonds
36.4
0.36
Emerging-market bonds
71.9
0.49
Danish shares
36.2
0.29
Foreign shares
153.8
0.41
Unlisted shares
489.4
2.38
Properties (core)
10.3
0.23
Properties
52.2
1.07
Infrastructure (core)
12,0%
12%
Table 8
Infrastructure
11,0%
Other strategies
Unallocated costs*
10%
8,2%
Total investment costs
8,2%
8%
21.2
0.39
254.0
1.90
0.1
0.07
16.6
-
1,277.2
0.70
* Unallocated costs include rent, costs of liquidity and derivatives, including TAA and SAA
6,7%
6,7%
6%
5,1%
4,2%
4%
2%
-1,0%
0%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Investment costs vary considerably across asset
classes and they are highest for unlisted
investments. Investment costs have been
deducted in the 5.1% return for the year.
this strategy has historically resulted in high and
relatively stable returns.
Industriens Pension has active portfolio
management with a high proportion of unlisted
investments. This strategy entails relatively
higher costs than a strategy with passively
managed, listed assets. For Industriens Pension,
-2%
10