As we have already noted in a market analysis dated 13 March 2020, the Covid-19 virus is having an impact on both LD Pensions’ returns and financial market returns in general. This has an impact on the returns in the investment funds in which members of The Cost-of-Living Allowance Fund can invest their savings.
In the case of The Cost-of-Living Allowance Fund, a very large proportion of members’ assets is invested in the LD Discretionary investment fund. LD Discretionary has a conservative investment profile, with substantial investments in gold-backed bonds. This provides a degree of protection against sharp falls in the stock markets.
We cannot predict how things will develop in the coming weeks. However, you should be aware that if you choose to receive payouts at a time when there are significant daily fluctuations in the financial markets, there is a greater risk than usual that your LD Account will show a substantial loss. In the
recent period, there have been some very exceptional instances where we have had to postpone the valuation and payouts by one day because stock exchanges around the world were unable to provide stable and reliable prices. However, we still expect to be able to meet members’ requests for payouts.
You can check the current exchange rates every day here at ld.dk, and members can always log in to the self-service portal to view their current balance on their own LD Account. We are, of course, keeping a close eye on developments and are constantly assessing whether we can do more to protect our members’ savings.
