Bilag 07



Dette er den "tilstrækkeligt gode" tekst som virksomheden Danish Pension A/S i uge 30/2004 efter aftale valgte med en journalist valgte at sende afsted til et engelsk fagtidskrift indenfor pensions- og forsikringsområdet. Papirets funktion var at give stof til journalistens arbejde med at skrive et indlæg til et tidsskriftet journalisten er ansat på.



The Copenhagen-based Danish Pensions A/S was formed just over twenty years ago, in a pioneering venture move by two big players in the Danish labour market; N/A A, on the employer side and N/A B, a grouping of unions. It embraces N/A thousand members in N/A businesses across the country and the scheme is mandatory.


Fifteen years ago it had contribution inflows of DKK N/Am (USD N/Am) and funds of DKK N/Am at year-end, or a bit less when life cover costs are deducted. Currently the expected income is DKK N/Abn (USD N/Abn) and assets at DKK N/Abn (USD N/Abn). “This build up is possible due to the low average age of members, at N/A years”.


Contributions will raise from the present N/A% to N/A% in mid 2006. By a contribution of N/A% the yearly expected income will be around DKK N/Abn (USD N/Abn).


DP investment philosophy is to increase its long-term yield on investments by following an investment strategy which focus on high yield asset classes and correlated high risk. This more extensive exposure will at present primarily be formed by equity investments, though corporate bonds and emerging markets bonds is included as well.


The funds overall risk ratio will be reduced through diversification on different asset classes.


The opportunities for risk management will be subject to an ongoing process of analysis to provide for estimates of the yield of investments held against the risk derived from implementing new types of assets in the portfolio. The risk budget, an estimation of the fund’s overall risk profile is determined through the investment policies.


It is DP’s opinion that the risk will decrease not only through diversification on asset classes but also through collaborative activities with a variety of portfolio managers. By a considerate and careful selection of portfolio managers within each asset class thus deriving/promoting a contemplative effect from the investment practice and style of each member within the chosen group of portfolio managers.


Some of the portfolio managers invest globally thus gaining great opportunities from tactical geographical positions, whilst others cover a certain geographical area whereby these will profit from their in-depth knowledge of this particular market. In general, each type of manager bring about a different return, hence Industriens Pensionsforsikring has chosen to use both types in a structure that additionally deliver opportunities for holding/being a neutral geographical position or to hold/be overweighed versus low-weighed within a certain/chosen geographical area.


A table showing the development of investment "Asset Class" - Omitted in this working paper (for confidentiality reasons!).


During 2001 the portfolio’s risk ration was downsized by reducing of the share of equities; from N/A% in 2000 down to N/A % in 2002.

This meant that the optimum strategy for DP with global as well as regional managers was deferred.


DP decided in 2003 to increase its share of equities again. In October 2003 DP appointed AXA Rosenberg as managers of US small cap (USD N/Am) and Invesco as managers of US large cap (USD N/Am).


DP has just recently, in July 2004, engaged State Street to be the managers of Japanese equities (UDD N/Am), whereby the circle of regional managers meets its end. DP was already involved with Pictet in the field of global emerging markets equities and with Capital on European equities.


During the period 2000 through 2003 the exposure to emerging markets bonds and high yield corporate bonds was increased. In June 2004 Pareto was engaged to manage high yield corporate bonds (USD N/Am). DP had already T. Rowe Price managing high yield corporate bonds and Morgan Stanley managing emerging markets bonds.


Well over a year ago Industriens Pensionsforsikring decided, as with quoted equities, to increase substantially its exposure to private equities after having harvested their primary experiences within this field during the years 2000 through 2002.


DP’s has as present invested approximately N/A % of its assets in private equities. It is DP’s aim to reach at least N/A% within the next year and N/A% within a period of 3 to 4 years. It will take some time to build up a private equity scheme, as investments are likely to be made over a period of 3 to 5 years after a pledge of investment has been given.


DP has articulated the following goals for its investments in private equity: The table is omitted in this working paper for confidentiality reasons.


The allocation of investments within a given year can diverge from the long-term strategy. This will depend on the quality of the funds on offer and of how well these funds match DP’s present portfolio.


The pool of private equities are solely operated through fund of funds or investment companies and will not be directly invested in the actual company.


DP has decided to carry out the screening and selection of the main part of the Danish and European funds to meet their investments.


Within the last 12 months DP’s commitment to make investments amounts to a total of DKK N/Abn (USD N/Abn), on a divisional basis between 8 companies of which 3 are Danish funds:


Nordic Mezzanine II; commitment DKK N/Am (USD N/Am). Nordic Mezzanine offers mezzanine loans, primarily to Nordic enterprises.


Industri Udvikling II; commitment DKK N/Am (USD N/Am). Industri Udvikling is a Danish buyout fund, which invests in small and medium sized companies.


INCUBA Venture; commitment DKK N/Am (USD N/Am). INCUBA is a Danish venture fund, which invests in new, promising business in the field of IT and biotechnology.


Crown European Buyout Opportunities; commitment DKK N/Am (USD N/Am). CEBO is a specialized fund of funds primarily investing in small and medium seized European buyout funds. These funds will often only operate domestically within a certain country and will have to maintain a comprehensive pool of knowledge about local affairs and conditions, e.g. language, national legislation, etc. Crown is administered by the LGT Bank, which was originally founded in Switzerland/Lichtenstein.


It is DP’s intention to decide which of the big regional or Pan-European buyout funds to invest in, whilst LGT/Crown will be trusted with the task to find a number of smaller funds of interest.


EQT IV; commitment DKK N/Am (USD N/Am). EQT IV is a North European buyout fund primarily operating in the Nordic Countries and Germany. The funds premises are situated in Stockholm, but there are branch offices in a number of other cities, e.g. Copenhagen.


Paul Capital VIII; commitment DKK N/Am (USD N/Am). Paul Capital is a so called secondary fund, i.e. a fund whose activities is focused on investments made in what is commonly phrased as “used funds” with an investor wanting to cop out of an engagement.


Further to this, DP has pledged to make investments in two additional funds. There are some details with these agreements that remain pending and therefore cannot be published.


DP expects to make further commitments for a total of DKK N/Abn (USD N/Am) p.a. in the years ahead.


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