Investing pension funds

ATP has an overall investment strategy that takes into account that we need to provide guaranteed and lifelong pensions to our members no matter what interest rates do and how the life expectancies of our members develop and that we need to make every effort to ensure the real value of the pensions that are paid out.

The members’ mandatory contributions are divided into a so-called guarantee contribution and bonus contribution, where the guarantee contribution amounts to 80 per cent and the bonus contribution amounts to 20 per cent.

While the guarantee contribution is used to secure the individual member a lifelong and guaranteed pension from the state pension age, the bonus contribution helps to secure the real value of the lifelong pensions over time and cover for unforeseen events such as, for example, longer life expectancy.

Difference in risk

The funds for the guarantee contribution and the bonus contribution are invested differently:

For the majority of the funds - the guarantee contribution of 80 per cent - we take virtually no risks. These funds are invested in bonds and interest rate swaps so that we can be sure that we are able to pay the guaranteed lifelong pensions to our members when they reach the retirement age.

For the second and smaller portion of the funds - the bonus contribution of 20 per cent - we invest in high-risk assets so that the returns over time can contribute to ensuring the real value of the pensions. All in all, the invest strategy has a balanced risk profile in relation to achieving our objective.

Changes to the business model

For ATP’s Supervisory Board and management, the top priority is to continually ensure that the business model is contemporary and appropriate in terms of the objective of ensuring that our members get the best possible lifelong pensions.

Therefore, in recent years we have worked on optimising the pension product and business model. This has resulted in the business model being optimised in two areas: life annuity with market exposure and a change to the hedging strategy.

Learn more about ATP’s investment strategy and changes to the business model

What do we invest in?

Risk diversification is a priority for ATP, and therefore, it is important that we have a broad and diverse investment portfolio.

We invest both in Denmark and abroad - for example, in bonds, equities, real estate and infrastructure - in order to ensure the highest possible returns at the lowest possible risk.

We have a special role as an investor as we have invested DKK 440bn in Denmark.

And it should be noted that green investments are also a growing focus area for investors - including ATP.

After all, climate change impacts us all, and as a long-term investor, we take the challenges seriously. It is critical for the worth of our long-term investments that we begin to increasingly focus on the green transition - both in our current and future investments.

Responsibility reports

Results and reports

Research articles within investment