Danica Pension talks about ‘robust’ investment of my savings in Danica Balance – what does this mean?
We define robustness as investing your savings broadly, so that you should not incur huge losses, even if we experience major declines in the financial markets. Our strategy is to look ahead and optimise your expectations of a stable return over time, which should enable you to benefit from your pension savings when you retire.
Can you get high returns without taking risks?
Naturally, it would be great if it was possible to get high returns without risk of major losses. But the two go hand in hand. If you take the risk required to get a very large return, you also accept a higher risk of major losses. As a Danica Pension customer, you can take higher risk if you want to. If you choose a very high risk profile, however, we cannot offer you the same level of robustness as we cannot diversify your investments to the same extent.
How can you generate high returns at a lower risk?
– We can do so, because we have strong purchasing power due to our size. Just like you often get a discount when you buy in bulk in the supermarket. We can make very large bulk purchases as we have about DKK 350 billion at our disposal. As a result, we make a lot of transactions at a lower price than others can, and our customers benefit from these discounts in the form of higher returns. We are also often the first to be offered to invest in large projects, such as properties or motorways. And these are often really good investments.