IPF årsrapport 2018 (eng) - Flipbook - Side 18
_____________
16
Outlook for 2019
Members and contributions
In 2019, the number of members of Industriens
Pension paying via their employer is expected to
remain unchanged and the number of members
at the end of 2019 is expected to total around
410,000.
Total contributions, including contributions to
sickness and accident insurance, are expected to
amount to DKK 9.8 bn. in 2019.
Costs
Industriens Pension will continue its focus on
ensuring efficient administration of the pension
scheme in order to keep costs low. For 2019,
members will pay DKK 22 per month to cover
administration costs.
Investment costs vary with the investment
strategy selected and are expected to increase in
line with the increasing market value of
investments. However, the cost rate compared
with investment assets is not expected to
increase significantly.
Investment activities
The investment strategy for 2019 is organised on
the basis of the principle investment framework
adopted by the Board of Directors.
Deviations from this fundamental framework within
the agreed latitude will be made to increase returns.
For members not on a market interest rate, the
interest-rate risk linked to the life-assurance
provisions will generally continue to be hedged
100%. This hedging is to ensure that provisions are
not affected inappropriately by significant
fluctuations in interest rates.
Based on current long-term expectations, return on
the company's investment assets is expected to
amount to 5.2%, corresponding to approx. DKK 9.0
bn. before tax on yields of certain pension-scheme
assets.
Rate of interest on members' savings
The rate of interest on members' savings for those
who are still in the average-interest-rate
environment has initially been set at 9% per annum
after tax on yields of certain pension-scheme assets
in 2019.
Expected result for 2019
Profit for the year depends greatly on the return
achieved on the assets linked to equity. With the
assumptions applied regarding return, a profit of
around DKK 150 to 200 mill. is expected for the
financial year 2019.