LD Pensions' listed assets are predominantly invested in Kapitalforeningen LD (KLD) (Formerly named Den Professionelle Forening LD) which is fully owned by LD Pensions. LD Pensions' investment activities are therefore mainly conducted through this subsidiary. The assets in KLD represent 90 % of LD Pensions' total assets.
The fund is a special type of mutual fund, which is suitable for a professional investor such as LD Pensions, and it presents separate financial statements, which are fully incorporated in LD Pensions' financial statements.
KLD is inter alia governed by the Danish Act on investment Associations, Special-Purpose Associations and other Collective Investment Schemes etc. (in Danish: Bekendtgørelse af lov om investeringsforeninger og specialforeninger samt andre kollektive investeringsordninger m.v.)
The assets are placed in a number of mandates within the following investment areas:
- Danish Equities
- Danish Short-Term Bonds
- Global Equities (excluding Danish and Emerging Market Equities)
- Danish High-Grade Bonds
- Emerging Market Bonds
- Global Inflation Linked Bonds
- Environment & Climate Equities
- High-Yield Bonds
- Emerging Market Equties
- Credit Investments
- Other Credit Investments
External portfolio managers have been selected for each of these mandates.
Furthermore, there is established a number of mandates where LD Pensions is the portfolio manager. These mandates include some of LD Pensions’ present portfolios, which are not suited to be part of the external managed mandates.
KLD also includes mandates, which are offered to the members of LD Pensions, and the members are able to invest their contributions according to their own choice. The following portfolios are available:
- LD Discretionary
- LD Danish Equities
- LD Global Equities
- LD Environment & Climate
- LD Short-term Bonds
- LD Mixed Bonds
The portfolios do not invest directly in equities and bonds, but place the pool assets in one or more of the mandates. This means that the portfolios invest together in the mandates, which reduce the investment costs and give the portfolios an opportunity to invest in a broad portfolio of assets in a flexible manner.
In the future, the allocation of investments among individual mandate sub-funds will be managed by LD pensions' own organisation. In that connection the board of Kapitalforeningen LD was restructured in January 2011 to consist of LD Pensions' day-to-day management.