LD Pensions handles the strategic and tactical management of the investments for both funds. Outsourcing is widely used within the areas, where it provides economic and governance benefits.
The Board of LD Pensions has defined a number of objectives and principles that apply regardless of whether the investment management takes place within LD Pensions’ own organisation or by external asset managers.
It is essential that LD Pensions continue to be perceived as a reliable and competent manager of the means of its members/customers, which is ensured by investing actively with focus on long-term value creation, while LD Pensions does not pursue "quick wins". LD Pensions aim to generate returns that exceed the benchmarks the Board has decided. Competitive returns are generated based on active management within the defined risk and investment framework.
Two separate economies in a joint investment community
The assets of Lønmodtagernes Feriemidler can be incorporated into the existing investment structure in a simple way. Moreover, the two funds’ joint investment community ensures low costs and access to qualified investment advisers in all key areas.
The investment strategy for Lønmodtagernes Feriemidler differs from the investment strategy for Lønmodtagernes Dyrtidsmidler. Apart from the fact, that the time horizon is different for the two funds, then Lønmodtagernes Feriemidler also has a very particular asset, namely the holiday receivables, which remains with the employers. It is a safe asset, because the risk of loss is small, but it is the employers who decide how big a share the holiday receivables make up of the assets.