AMWatch

PFA says three big changes will bring better returns

To get returns on the same level as other pension firms, PFA has made three big changes to its portfolio, including taking on more risk, says the firm, which doesn't fear a backlash from this year's predicted unsteady market.

Kasper Lorenzen, chief investment officer at PFA | Photo: PR / PFA

The past few years, pension company PFA has made three big changes to its portfolio, which are meant to come together in bringing improved returns for its pension savers, Chief Investment Officer at PFA Kasper Lorenzen tells Finans.

PFA has taken on more risk in its portfolio, it has made changes to its for unlisted assets, and the company has also changed the way it invests in listed equities.

The increased risk-taking comes at a time of high uncertainty about how inflation will affect markets, but Lorenzen still thinks this was the right decision.

"Some things have changed. The dynamics between fiscal policies and the central banks has changed character. There is more coordination, and it is more in tune than could have been expected. The global growth picture has also evolved favorably. Companies are doing very well, and there is earnings growth just as there is economic growth," says Lorenzen.

FinansWatch previously described how a medium risk pension saver with 15 years to retirement – that is, a customer in their 50s – receives a return of 15.3 percent in 2021 from PFA. This came to an eighth place our of 19 pension firms, and the return was slightly under the average of 15.7 percent, beating competitors Danica and Velliv.

(This article was provided by our sister media, FinansWatch.dk)

PFA Chair calls historic loss on aviation company "a highly regrettable case"

2021 pension returns comparison finds huge disparity between top and bottom firms in Denmark

"Low-risk" investment generates biggest ever single-investment loss in pension sector history

PFA sounds pension alarm as more than ten percent aren't saving enough 

More from AMWatch

Evli Q1 more impacted by markets than outflow

The market turmoil in the first three months of the year has had more of an effect on Evli than outflows, though the fact that international investors have pulled out of Evli’s corporate bond fund has been felt.

Further reading

Related articles

Latest news

AMWatch job

See all jobs

See all jobs

Watch job

See all jobs

See all jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch