The LD Short-Term Bonds portfolio has now closed. If you had cost-of-living allowance funds invested in LD Short-Term Bonds, you can read here what you should have been aware of in this regard before we closed the portfolio.
If you held cost-of-living allowance funds in the LD Mixed Bonds portfolio, you do not need to take any action. All that has happened for you is that the portfolio has been renamed LD Bonds.
Members who had savings invested in LD Short-Term Bonds have received a letter from us containing information about the change.
The text below sets out the information that was relevant before the LD Short-Term Bonds portfolio closed.
Deadline for portfolio selection
If you have savings invested in LD Short-Term Bonds and wish to decide for yourself which portfolios this part of your savings should be allocated to, you must make your portfolio selection by 25 May 2025 at the latest. If you do not perform portfolio selection by the deadline, we will transfer this portion of your savings to the continuing bond fund, LD Bonds.
Why just one bond pool?
As only a small group of members invest part of their savings in the bond portfolios, the costs associated with these portfolios have become too high in relation to the amount of capital invested in them. We are unable to keep costs at the same low level as we can offer in our other portfolios. By merging the two portfolios into a single bond portfolio, we can offer a bond portfolio that is attractive to members in terms of both investments and costs.
Fortunately, you can still choose your investment fund. We’re continuing to offer three equity funds and one bond fund, which you can choose to invest your savings in, in addition to the main fund, LD Discretionary.
LD Mixed Bonds is changing its name to LD Bonds
For members with savings in the LD Mixed Bonds portfolio, there will be no change, apart from the fact that the portfolio will be renamed LD Bonds. The portfolio will continue to follow the same investment strategy as before.Â
Investment risk in LD Bonds
LD Short-Term Bonds are in the same risk category as the portfolio into which the assets are transferred. Nevertheless, it is to be expected that the variation in returns will be greater in the continuing portfolio, LD Bonds, than in LD Short-Term Bonds. Investments in LD Bonds are more sensitive to changes in interest rates, and for some of these investments the risk of loss will be greater than for government and mortgage bonds, in which the entire portfolio of LD Short-Term Bonds is invested. Â
The LD Bonds portfolios will have a broad investment universe within the bond market, though with an overweight in government and mortgage bonds. They will also invest in corporate bonds and bonds issued by emerging market countries. Investments are structured such that a one percentage point rise in interest rates could result in a capital loss of between 2 and 7 per cent. Consequently, the interest rate risk on these investments may be higher than in the portfolio we are closing. For LD Short-Term Bonds (which is being closed), the interest rate risk was to be kept at a maximum of 3 per cent. Â
You can compare the two current bond portfolios – in terms of both Return and risk – here:
What happens if I have savings in the portfolio that is being closed?
The LD Short-Term Bonds portfolio will close at the end of May. If you have any of your savings invested in this portfolio, you may choose to transfer your funds to other portfolios. Portfolio selection must be completed by 25 May 2025 at the latest.Â
If you wish to keep this portion of your savings invested in a bond portfolio, you do not need to do anything. We will automatically transfer your savings to the LD Bonds portfolio.
You can always perform your own portfolio selection
Even if you leave it to us to transfer your savings from LD Short-Term Bonds to LD Bonds, you can always make new portfolio selections yourself at a later date and transfer your savings to other portfolios.Â
If you have savings with the Holiday Allowance Fund, the merger of the two bond funds does not apply to you. At the Holiday Allowance Fund, you cannot choose between different investment funds.
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You can keep your savings invested in LD Short-Term Bonds right up until midnight on 25 May 2025. If you haven’t transferred your funds to other portfolios yourself by then, we’ll do it for you.
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A portfolio selection incurs a fee of 25 kr., which we will deduct from your savings. So if you choose to transfer your savings to the LD Savings fund yourself, this will incur a fee of 25 kr.Â
If you do not perform your own portfolio selection by the deadline of 25 May 2025, we will transfer that portion of your savings to LD Bonds. You will not be charged a portfolio selection fee for this.Â
Even if you leave it to us to transfer your savings into LD Short-Term Bonds, you can always make new portfolio selections yourself at a later date.
You only pay fees for portfolio selections that are carried out.Â
Find out more about portfolio selection in the Rules for Portfolio Selection
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In February or March 2025, you will have received an annual letter from LD Pensions. The letter will show you which portfolios your savings are invested in. The vast majority of members have their entire savings invested in the main portfolio, LD Discretionary.Â
You can also log in to the self-service portal here at ld.dk to see how your savings are invested and the returns you have received.Â
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You can only make one portfolio selection per month. The deadline for making a portfolio selection is the third-last banking day of the month. After this, your portfolio selection is locked, and once it is locked, you can no longer cancel or change it. You are bound by your portfolio selection, which will be carried out.
If several consecutive selections are made before the lock-in deadline, only the most recent selection will be implemented.
If you are conducting portfolio selection in May, the deadline is 25 May 2025.
You can view the deadline for booking a portfolio selection under ‘Book a portfolio selection’ in the self-service portal. The deadline for booking a portfolio selection is also the deadline for cancelling the portfolio selection you have booked.
Under the ‘Receipts’ menu item, you can view the portfolio selection you have ordered, and here you can also see the date on which the portfolio selection will take place. It will be indicated whether you still have time to cancel the portfolio selection.
