Choice of Pension Profile and Funds

A pension profile can consist of different proportions of equities and fixed income, and it is important that you choose what suits you.

When you must choose a pension profile, it is the equity proportion you must consider. You should think about how much risk you want to take, your expected rate of return and how many years remain until you retire. If there is a long time left, you are less at risk from market fluctuations since the risk associated with a high proportion of shares is spread over a longer period. Historically, equities have provided a better rate of return than interest rates, but they also fluctuate more over time.

Please note that historical rate of return is no guarantee of future rate of return.

• Good diversification of investments, distributed across several funds and asset classes
• Automatic rebalancing; we adjust the investments so that the composition in the pension profiles remains constant
• Downweighting – the risk is gradually reduced as you approach retirement age. You can also choose to turn this off, or change when the downweighting should start
• Flexibility – you can change risk profile or management style if your needs change

At DNB, we offer three different sets of pension profiles, where the main difference is the management style of the underlying funds.

Active management- Our experts select the companies they believe will deliver the best rate of return. Additionally invests in markets such as high-yield bonds, commercial property, private equity and infrastructure.

Index management- Passive management at low costs.

Green portfolio- Investments with a clear sustainability profile, with particular focus on climate and the environment.

Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the skill of the Portfolio Manager, the mutual fund’s risk, and the management costs. Returns may be negative as a result of mark-to-market losses.