Annual Report IPF 2021 - Flipbook - Side 11
INDUSTRIENS PENSIONSFORSIKRING A/S
ANNUAL REPORT 2021
INVESTMENT ACTIVITIES
High returns over 10 years
Investment costs
With a return of 16.8% in 2021, Industriens
Pension maintained long-term stable high returns.
Over the past 10 years, investment assets have
yielded an average annual return of 8.5% 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.
Investment costs were 0.65% of assets in 2021,
which is lower than in 2020. Investment costs vary
considerably across asset classes and they are
highest for unlisted investments. Investment costs
have been deducted in the 16.8% return for the
year.
For Industriens Pension, 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.
Table 8
Figure 1
Investment costs in 2021 by types of assets
Returns before tax for the past 10 years
Asset type
16.8%
DKK mill.
%
25.1
0.07
107.4
1.08
Investment-grade corporate bonds
28.5
0.32
High-yield corporate bonds
40.8
0.34
Emerging-market bonds
85.7
0.42
Danish shares
39.9
0.24
Foreign shares
196.3
0.39
Unlisted shares
480.2
1.81
Properties (core)
11.0
0.18
Properties
72.0
1.60
Gilt-edged bonds
Other credit
12.9%
12.0%
11.0%
8.2% 8.2%
6.7%
6.7%
5.1%
Infrastructure (core)
28.2
0.56
247.1
1.86
Other strategies
11.7
3.08
Unallocated costs*
15.4
-
1,389.3
0.65
Infrastructure
-1.0%
Total investment costs
* Unallocated costs include rent, costs of liquidity and derivatives, including TAA and SAA
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