Annual Report 2023 (eng) - Flipbook - Side 76
Annex 1
What proportion constituted sustainability investments?
What was the asset allocation?
Asset allocation
describes the
proportion of
investments in
specific assets.
Industriens Pension's current pension product is a lifecycle product. This means that the investment risk is
gradually reduced as the individual member grows older and approaches retirement age. The allocation across
asset classes, i.e. the allocation on shares, bonds and other investments in property and infrastructure, for example,
depends on the individual member's age. In practice, the member's pension savings are divided into two portfolios.
A defensive portfolio with a relatively low risk, and an offensive portfolio with a relatively high risk. A member under
the age of 51 has 100% of their savings in the offensive portfolio. After the member is 51, the proportion of the
savings in the offensive portfolio is gradually reduced, while the proportion in the defensive portfolio is gradually
increased. This means that the risk is gradually reduced in line with the member's age.
The specific allocation of asset classes in the two portfolios is available here (in Danish):
https://www.industrienspension.dk/da/OmIp/Investeringer/Aktiver
The asset allocation is shown for total portfolio, i.e. both the offensive and the defensive portfolios. The asset
allocation for a specific member is therefore not shown, but the asset allocation for pension savings of all members
in Industriens Pension's lifecycle product is shown. Derivatives included in category #2 Other are not used to
achieve environmental or social characteristics.
Asset allocation in the investment portfolio:
Investments
100%
#1 In accordance with
E/S characteristics
94%
#1A Sustainable
20%
#1B Other E/S characteristics
74%
#2 Other
6%
#1 In accordance with E/S characteristics covers those of the financial product's investments that are used to achieve
the environmental or social characteristics promoted by the financial product. This category includes the whole
portfolio except derivatives, as all investments in the portfolios are made in accordance with the policy on responsible
investment and active ownership and therefore promote environmental or social characteristics.
#2 Other includes the remaining investments in the financial product that are neither consistent with the
environmental or social characteristics nor can be qualified as sustainable investments. This category includes
derivatives.
10
