Sampension Administrationsselskab A/S manages the investments of Sampension KP Livsforsikring, The Architects’ Pension Fund (AP) and The Pension Fund for Agricultural Academics and Veterinary Surgeons (PJD). This is done under Investment Policies and Regulations approved by the respective boards of the three mentioned pension companies, which in turn are subject to Solvency II, including Prudent Person-requirements, and further Danish law.
The Investment Policies reflect the nature of the different pension liabilities and goals. Sampension KP Livsforsikring has client groups with both guaranteed pensions with profit, pensions with a stated intended annuity with profit and fully unguaranteed pensions. The investment portfolio is divided to reflect these different liabilities.
To manage the interest rate risk related to the guaranteed and intended pensions Sampension manages a separated liability hedging derivatives portfolio utilizing government bonds with long maturities, interest rate swaps and other derivatives. The investment portfolios of AP and PJD reflect the conditional guarantees embedded in the with-profit pension products of these two pension funds.
Derivatives are used to reduce investment risks, reduce pension liability mismatch risks, manage liquidity and, where relevant, as instruments for a cost efficient implementations of the investment portfolio.
The overall investment risks are monitored and managed by Sampension within these Investment Policies and Regulations. The implementation utilized both internal and external investment management. Management of risk overlays, indexed risk exposures, tactical allocation, interest risks, government bonds and European covered bonds, counter party risks, FX risks and domestic real estate is primarily conducted internally, whereas equity risks, credit risks and alternative investments primarily are implemented through external investment managers.