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Annual report 2012

Summary of LD’s annual report 2012.

From 2012 the annual report is only published in Danish and can be found via the link below

Årsrapport 2012

About the members 

A return of 9.8 per cent on LD Vælger ensured that 2012 was a very satisfactory year for LD.

The savings of the members were increased significantly and the value of a full-time account surpassed DKK 110,000 at the end of the year. Now, a little less than a third of the members have savings amounting to more than DKK 100,000.

The satisfactory return has also been a contributing factor to that the members to a greater extent has chosen to leave their savings in LD even after they have turned 60, where they otherwise would be entitled to withdraw their savings. At the end of 2012, the share of 60-year-old members, who has chosen to maintain their savings in LD, accounted for 34 per cent of the total number of members.

In 2012 the number of withdrawals was 40,134, which is an increase of 8.9 per cent compared to 2011. However, the number of withdrawals is still lower than in 2008 and 2009, where the financial crisis was at its peak. Contrary to withdrawals, the number of transfers reached its lowest number since the “transfer right” was introduced in 2005. Only 2,765 members chose to transfer their savings to another pension provider. At the end of 2012 LD had 783,000 members and member assets amounted to DKK 52.5 billion.

About LD

For a number of years LD has pursued a strategy, where activities, which with advantage may be handled outside LD’s organisation, are outsourced to carefully selected external collaboration partners. This process continued in 2012 where Nykredit Porteføljeadministration A/S undertook the administration of LD’s investment portfolio and the depository bank business was handed over to Nykredit Bank/BNY Mellon. In that connection a number of reporting tasks, surveillance tasks and it-solutions were outsourced. Subsequently, outsourcing of LD’s own it-administration was implemented by entering a contract with It-afdelingen A/S. 

As a result hereof LD’s organisation is able to focus fully on the strategic and the tactical allocation of investment tasks and management tasks regarding investment management and member administration. Thus LD’s organisation has been reduced over the years with two-thirds and now consists of approx. 15 employees.

The adjustment has resulted in a significant reduction of LD’s fixed costs. The entered contracts with the collaboration partners contribute further to ensure that LD may maintain its low cost level, when the assets in the coming years are expected to decline as a result of member withdrawals.