Annual report 2016

From 2012 the annual report is only published in Danish.

The annual report for 2016 can be found via the link below

Årsrapport 2016

Summary of LD's annual report 2016.

About the members

LD's members increased their savings in 2016 as a result of a return on an investment of 2.2 billion DKK, corresponding to 5.2 per cent. This despite the fact that the fianancial market situation in 2016 fluctuated between pessimism and optimism. The financial markets were characterized by high volatility with negative development within the equity markets at the beginning of the year. However, LD's credit and bond investments protected the savings of the members, which were further strengthened by positive equity returns towards the end of the year.

The nearly 90 percent of members, who have all their savings in LD Discretionary, received a very satisfactory return of 5.5 percent, which was higher than the expected return at the beginning of the year. Consequently, LD Discretionary outperformed the market during the dramatic market conditions during the first half of 2016.

For several years, LD has noted that a large number of the members maintain their savings in LD after the age of 60, where they are able withdraw it. The number of payments in 2016 was thus at the same low level as in 2015. 

In 2014, in connection with approval of the Finance Act, the Danish parliament approved to bring forward the tax revenue from LD by offering a tax relief to all LD pension eligible members. A large member group received the tax relief in 2015. However, 2016 is the first year where the tax relief is offered on a continuous basis for the 60-year-olds. In 2016 another 45,000 members obtained the tax relief. 75 percent of these members maintained their savings in LD, whilst 25 percent obtained the tax relief in relation to disbursement of their LD account.

At the end of the year, 44 percent of LD's assets were placed in an LD-age savings account, where the tax is paid to the Treasury at the time of conversion and the savings can payed out without taxation at the time of disbursement.

About LD

The Danish Financial Supervisory Authority undertook an inspection of LD in March 2016. The inspection covered major areas such as the work of the board of directors, the secretariat, the investment areas, risk management and outsourcing. Focus was on the areas posing the greatest risks. The inspection did not give reason to any regulatory reactions, which was very satisfactory for LD.

The LD-law was amended from 1 July 2016 so that the law for the investment area is consistent with the law for rest of the pension sector. The most significant change is that the previous quantitative investment rules were discontinued and replaced by the so-called Prudent Person Principle, which is part of the EU Solvency II Directive. The discontinuation of the quantitative investment rules means that there are no longer rules of law, which limit the placement of funds in LD Discretionary. Instead, the board now have to determine the placement limits for the assets.

On 8 February 2016 Lars Qvistgaard, newly elected chairman for Akademikerne, replaced  Finn R. Larsen.