Danica Balance Responsible Choice promotes environmental and/or social characteristics and ensures good governance practices. This means that it complies with the disclosure requirements under Article 8 of the EU Sustainable Finance Disclosure Regulation.

In the terms and conditions, you can for example read more about the overall sustainability focus of the investment method, how it promotes environmental and/or social characteristics, and how sustainability risks are taken into consideration alongside other relevant risks in the selection of the underlying investments. Please find the document here (in Danish only).

In the document ‘Tillæg om bæredygtighedsforhold i Danica Balance’, which is a supplement to the investment method’s terms and conditions, you can find more details about the specific sustainability focus and metrics of the investment method. Among other things, this document details the proportion of sustainable investments, the criteria for exclusion of companies and how Danica Balance Responsible Choice focuses on selecting investments with sound sustainability practices. Please find the document here (in Danish only).

In the document Website Disclosure – Danica Balance, you can find further information about how Danica Balance Responsible Choice promotes environmental and/or social characteristics and how this is continuously monitored and analysed. Please find the document here (in Danish only).

As Danica Balance Responsible Choice has a strong focus on sustainability and excludes many investments, you will not achieve the same diversification of investments and risk as under your general Danica Balance scheme. Accordingly, the expected return under Danica Balance Responsible Choice will be slightly lower compared to the same investment risk under the general Danica Balance scheme. In practice, however, the return may sometimes be higher, the same or lower.

See the return for Danica Balance here and Danica Balance Responsible Choice here.

Because Danica Balance Responsible Choice has an increased focus on sustainable investments and excludes a wider range of investments, it does not provide you with the same investment diversification and risk spread as Danica Balance. This means that the expected return with Danica Balance Responsible Choice will be slightly lower than with Danica Balance for the same risk level and investment strategy. In practice, however, returns may be higher, equal or lower for certain periods of time.

View the return for Danica Balance here (in Danish only) and for Danica Balance Responsible Choice here (in Danish only).

It is up to you what percentage of your savings you want to move to Danica Balance Responsible Choice. You can log on to Netpension and make the change yourself. The percentage of your savings you move to Danica Balance Responsible Choice will be invested at the same level of risk as you have chosen for your general pension savings.

Through your investments, you help strengthen the companies you invest in. By investing in companies and projects working towards a stronger focus on ESG-factors, you help improve the companies’ working conditions, as investments help them financially and thus support their efforts to develop responsible solutions for the future.

When your Balance guarantee applies, you invest in Danica Pension Offensiv and/or Danica Pension Offensiv Responsible Choice as well as in one or more special bond funds with differing interest rate sensitivities. If you invest in Danica Balance, you can have investments in the following bond funds:

• Danica Pension Korte Obligationer (short-term bonds)
• Danica Pension Lange Obligationer (long-term bonds)
• Danica Pension Ultralange Obligationer (ultra-long-term bonds)

If you invest in Danica Balance Responsible Choice, you can have investments in the following bond funds:

• Danica Pension Korte Obligationer Responsible Choice (short-term bonds)
• Danica Pension Lange Obligationer (long-term bonds)
• Danica Pension Ultralange Obligationer (ultra-long-term bonds)

Danica Pension Korte Obligationer Responsible Choice invests exclusively in short-term sustainable bonds. The other three bond funds invest primarily in traditional government bonds and mortgage bonds. We do not have variants of Danica Pension Lange Obligationer and Danica Pension Ultralange Obligationer with sustainable bonds because the supply of sustainable bonds is currently insufficient to allow us to manage sustainable variants of these funds in an expedient manner. For this reason, we continue to invest in traditional bonds in Danica Balance Responsible Choice.

No more than 25% of the investments in Danica Balance Responsible Choice may be investments that we do not assess as sustainable. Although these investments may not meet our assessment criteria for being sustainable, we nevertheless ensure that they do not counteract the sustainability focus of Danica Balance Responsible Choice or constitute a significant negative impact on society and the environment. Such investments can include investment in companies in South America or Asia in order to ensure a sound spread of your investments and risk. The intention of such investments is to contribute to ensuring that you can receive attractive returns in relation to your choice of risk. Because complete information about these companies is lacking, we are unable to conclude with certainty that such investments make a sufficiently positive contribution towards the UN Sustainable Development Goals or live up to our own sustainability requirements.

Danica Balance Responsible Choice may have up to 25% investments which are deemed to be not sustainable. However, we make sure that those investments do not have a counterproductive effect on the sustainability focus of Danica Balance Responsible Choice or significantly harm society and the environment. We may invest in companies in South America or Asia, for example, to achieve reasonable diversification of your investments and risk. The purpose of these investments is to contribute to generating attractive returns relative to your chosen risk profile. Because of incomplete information about these types of companies, we cannot conclude with absolute certainty that these investments make a sufficiently positive contribution to the UN Sustainable Development Goals and satisfy our sustainability requirements.