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Annual report 2017

From 2012 the annual report is only published in Danish.

The annual report for 2017 can be found via the link below.

Årsrapport 2017

News article published 02.03.2018:

Annual Report 2017 for LD Pensions: Significantly larger assets than expected

LD Pensions’ assets amounted to DKK 41.6 billion at the end of 2017, which is DKK 1.6 billion higher than expected. This is due to solid returns and satisfied members, who choose to leave their savings in LD Pensions.

Today, LD Pensions has published its annual report 2017, which shows a year with good results and solid investment returns. The total investment returns amounted to DKK 2.9 billion. Equity investments contributed most to the result, but credit investments and bond investments also contributed to the satisfactory return.

Almost 90 per cent of the members, who have their savings in LD Pensions, were ascribed a return of 6.9 per cent. For the other members, the return derived from individual allocation, and especially the high returns from equity investments contributed with solid results for the majority of them.

Assets larger than expected

The solid returns in 2017 contributed to that the result for LD Pensions was DKK 1.6 billion higher than expected at the start of the year. For 2017, the total result for LD Pensions amounted to DKK 41.6 billion. If you compare the result with the 2014 forecast, it is apparent that the forecast has increased by DKK 5 billion in just 3 years, which is a significant development. Besides from the solid returns, which have increased the savings of the members nicely in 2017, it is also of significance to LD Pensions that quite a lot of the members choose to leave their savings in LD Pensions, even though they are entitled to disbursement.

 

The members are loyal

LD Pensions’ ability to generate relatively stable returns seems largely to match the expectations of the members. The disbursements hit a new low in 2017, where only DKK 2.3 billion was disbursed to approx. 30,000 members. Additionally, LD Pensions transferred almost DKK 1.4 billion to the Danish tax authorities as advance tax payments. Consequently, the advance tax payments weigh relatively much in comparison with the disbursements. By paying the tax in advance, the members obtain a tax rebate, and therefore the savings are not taxed upon disbursement.

 

Disbursement is possible at the age of sixty, and on average the members postpone their disbursement by four years. Quite a lot of the members maintain their savings in LD Pensions until retirement age. When LD Pensions attempt to disburse their savings at the age of seventy, most members decide to maintain their savings in LD Pensions, instead of having it disbursed. In 2017, members who were seventy years old accounted for 12 per cent of the total assets.

 

High return with a risk profile below average

Compared to the pension companies, LD Pensions’ investment horizon is short. It limits LD Pensions' possibilities to invest in equities and other risk assets. The obtained return must be assessed in the light of the special conditions that apply to LD Pensions. Morningstar takes the risk profile into account when assessing LD Pensions’ return on investments in listed securities in LD Vælger. The listed investments account for 97 per cent of LD Vælger and is part of the Morningstar rating, which compares almost 1,300 other European funds over a 3-year period. Morningstar characterizes the return as high and the risk profile as below average. It is extremely satisfactory that this ensures LD Pensions a ranking among the 10 per cent best performing funds in Morningstar’s rating®.