Investments

As with other aspects of the administration, the pension fund’s investments are managed by PKA, which means that PKA makes investments on behalf of the pension fund. Professionalism and financial consideration are key words in these investments.

The overall objective of the investments is to create a basis for the best possible pensions for the members. The assets are invested so that the pension fund will achieve a high long-term return, whilst the investments are adapted to the risk the pension fund can and, not least, is willing to undertake.

The greater the risk attached to an asset, the greater the expected return. The pension fund’s investments are made up with this in mind, so that there is a sensible correlation between the return and the risk. Diversification and risk management are thus an integral part of the pension fund’s investment philosophy.

The pension fund’s assets are spread among many different asset classes, which are in turn distributed among various types, countries and lines of business This ensures that the pension fund’s various asset groups do not experience loss and profit at the same time, as there will be profits that compensate for possible losses. By spreading the investments on many assets, a certain stability of return is ensured and the risk of very large losses is reduced.