Asset management

How we manage the pension profiles

A defined-contribution pension is a long-term investment in which the achieved return will constitute a significant portion of the pension capital when the pension disbursement starts.

History and experience from the financial markets has shown that investing in shares offers the opportunity for a higher long-term return than investing in fixed-income securities. Choosing the proportion of shares is therefore important for the long-term return we achieve. However, a challenge with a high proportion of shares is the fluctuations that must be tolerated when crises occur along the way.

We offer pension profiles with different proportions of shares, which thus give different return opportunities and risks. The pension profile’s name includes a number. This number indicates the proportion of shares for the pension profile.

The proportion of shares is the most important for long-term returns, but we know that our customers are also concerned with how we invest the pension assets.

At DNB, we therefore offer three different types of pension profiles, where the difference is mainly the management style of the underlying mutual funds.

All pension profiles follow DNB’s strategy for responsible and sustainable investments and follow the Group’s principles for corporate governance. Through active management, the managers take sustainability into account to a greater extent in their investment choices. Pension profile Next Generation is DNB’s pension profile with the greatest focus on sustainability by selecting only funds with a clear sustainability theme in this pension profile.

EU classification of mutual funds

The Sustainable Finance Disclosure Regulation (SFDR) came into effect in the EU on 10 March 2021. This has made it easier to compare financial products and services from a sustainability perspective, through uniform information and increased transparency.

The rules and legislation impose requirements on classifying mutual funds and include different categories depending on investment focus and how the fund is managed.