LD Pensions has appointed BankInvest as the manager of its listed alternative investments. The aim has been to enable LD Pensions’ members to benefit from the long-term return potential of alternative investments and to achieve better risk diversification for our equity investments. BankInvest will now help to fulfil this objective.
The photograph shows LD Pensions and BankInvest. From left: Anders Ulrich Nilsson and Kristoffer Fabricius Birch from LD Pensions, and Nils Lodberg and Tore Davidsen from BankInvest.
Kristoffer Fabricius Birch, co-CIO and Head of Portfolio Management in LD Pensions, explains:
"We were pleasantly surprised by the number of exceptionally high-quality proposals we received. BankInvest proved to offer the best solution in terms of quality and price. We are very much looking forward to rolling out the new investment model together with their highly qualified team."
Listed alternatives are a key focus area for BankInvest’s management. Furthermore, BankInvest has an investment process based on a quantitative and factor-based approach, which is in line with LD Pensions’ equity strategy.
“BankInvest has developed an investment process and portfolio structure that delivers a well-diversified portfolio and daily estimates of the value of the underlying unlisted investments. This is important for selecting the right investments,” says Kristoffer Fabricius Birch.
As an investor, LD Pensions also gains access to attractive digital tools that allow it to monitor exposure and returns, broken down by individual investments and asset classes, on a daily basis.
At BankInvest, Chief Investment Officer Andrea Panzieri is delighted about the forthcoming collaboration on the management of alternative investments.
“LD Pensions has adopted a modern approach to gaining exposure to alternative investments. LD Pensions benefits from a liquid portfolio with flexible portfolio management, a high degree of diversification and the opportunity to capitalise on market inefficiencies,” explains Andrea Panzieri.
BankInvest selected following an EU tender
The new model for alternative investments fits within the operational framework already in place in LD Pensions, and it is within the frozen holiday allowance that the new model is to be implemented. This is partly because the investment horizon is longer than that of the cost-of-living allowance funds. BankInvest is to build the new portfolio, with the initial focus on unlisted companies (private equity). At a later stage, other alternative investments such as property and infrastructure may also be considered.
LD Pensions has selected BankInvest as its new fund manager following an EU tender process carried out in the second half of 2023. LD Pensions received 12 bids from both Danish and international fund managers.
BankInvest is expected to commence management of the mandate during the first half of 2024. Initially, it is expected to manage around DKK 1 billion in private equity.
Key facts about LD Pensions and The Holiday Allowance Fund
- LD Pensions manages both the Cost-of-Living Allowance Fund and The Holiday Allowance Fund, and has total assets of approximately DKK 47 billion.
- The Holiday Allowance Fund comprises employees' frozen holiday allowances in connection with the transition to the new Holiday Act, which came into force on 1 September 2020.
- The assets in the Employees' Holiday Allowance Fund comprise an investment portfolio of financial assets and a receivable from employers who have retained holiday allowance within their companies. The outstanding holiday allowance is reduced in line with the companies’ payments.
Key facts about listed investment companies
- Listed investment companies are so-called closed-ended funds, which issue a fixed number of shares to raise capital for their investments. As a rule, it is not possible to inject further funds into the company or to reduce the number of shares issued. The investment company’s shares are listed on a stock exchange and traded there.
- Listed investment companies can invest in various asset classes. A large and growing proportion of listed investment companies are investing in alternative assets, including private equity, property and infrastructure.
