Annual Report 2023 (eng) - Flipbook - Side 11
INDUSTRIENS PENSIONSFORSIKRING A/S ÅRSRAPPORT 2023
Relevant benchmarks are applied to assess the
return on listed assets and the current return for
each benchmark is listed in Table 7. With regard
to unlisted investments, for which there are no
similar benchmarks, returns earned are applied.
For unlisted investments, a number of other
references are used to assess the returns on the
individual classes of assets.
Returns on the company's portfolios in bonds
and Danish shares were all in excess of the
return on the benchmarks set, while only returns
on the portfolio in foreign shares was lower than
the benchmark. The total return for the year was
0.2 percentage points below the total weighted
benchmark return.
The lower return than the benchmark on foreign
shares was due to a relative underweight in the
seven leading American technology shares,
which increased significantly in 2023.
Unlisted investments
The total portfolio of unlisted investments
amounted to DKK 83 bn. Investments are in
unlisted companies, infrastructure assets,
property and loans. Most is invested in unlisted
companies (DKK 29 bn.) and infrastructure
assets (DKK 28 bn.). The majority of the unlisted
investments are through funds and coinvestments with 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 made with local partners.
The return on investments in unlisted companies
(private equity) ended at -5% and thus below the
listed market. The venture market in particular,
which is dominated by start-ups and small
companies within the IT and healthcare sectors,
yielded a negative return with the backdrop of a
less attractive exit market.
Investments in infrastructure, which are both
through funds and through direct investments,
generated a total return of 3.2%. Whereas
infrastructure investments within the energy
sector benefited from the increasing energy
prices in 2022, in 2023 there was an adjustment
for lower energy prices, and this affected returns
negatively in 2023 as a large part of the
investment portfolio is within the energy sector.
The return on properties was -10.3% in 2023.
The portfolio of Danish properties generated a
slightly negative return of -1.7% as a result of
impairment losses related to generally higher
required rates of return in the market, whilst the
portfolio of foreign property was affected by the
higher write-downs due to negative trends for
office properties in the US.
Other credit (DKK 15.7 bn.) is investments
through funds that primarily focus on variableinterest unlisted corporate loans. These
investments yielded a return of 7.9% in 2023, as
the investments benefited from falling credit
spreads.
INVESTMENT ACTIVITIES
Good returns over 10 years
Investment assets have historically secured
members good returns. Even though the
markets in the period have developed very
differently, with significant rises and falls, the
average return over the past ten years has been
6.4% after costs.
Figure 2
Returns for the last 10 years
16,8%
17%
12%
7%
12,0%
11,0%
6,7%
8,2% 8,2%
5,7%
5,1%
2%
-3%
-8%
-1,0%
-6,5%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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