What does Danica Balance Responsible Choice invest in?

With Danica Balance Responsible Choice, your pension savings are invested with a dedicated focus on sustainability. A minimum of 75% of the investments in Danica Balance Responsible Choice meet out criteria for sustainability. In brief, these are investments that we have assessed as contributing significantly to one or more of the UN Sustainable Development Goals. These include investments in companies whose products and solutions in combination with their operations and manufacturing processes are working to solve global challenges related to climate, food production, the environment and health. This means that we evaluate what the company produces and the way in which it produces its product.

At the same time, we aim to ensure that your investments do not cause harm to society. Consequently, we do not invest in companies in a wide range of sectors such as alcohol, fossil fuels, military equipment and tobacco; nor do we invest in companies that contravene employee rights, damage the environment or are involved in corruption.

How we select investments


Danica Balance Responsible Choice invests in a range of investment funds that from a risk-perspective are the same as the funds invested in by Danica Balance but which have an increased focus on sustainability aspects.

To achieve the same level of risk as the regular investment opportunities in Danica Balance, Danica Pension Mix Responsible Choice and Danica Pension Defensiv Responsible Choice include a slightly higher proportion of share investments than the equivalent funds in Danica Balance. The figure below shows the investment mix for the three primary funds in Danica Balance Responsible Choice: Danica Pension Offensiv Responsible Choice, Danica Pension Mix Responsible Choice and Danica Pension Defensiv Responsible Choice.

 

Danica Pension Offensiv Responsible Choice

Danica Pension Mix Responsible Choice

Danica Pension Defensiv Responsible Choice

Danica Pension Offensiv
Responsible Choice

Danica Pension Mix
Responsible Choice

Danica Pension Mix
Responsible Choice

Selects investment in different ways

The investments in Danica Balance Responsible Choice comprise different types of investments across different geographic regions. This means that you spread your risk and can receive an attractive long-term return in relation to your chosen risk profile.

 

Shares
Actively selected shares
Shares from an index

Sustainable bonds
Green bonds
Social bonds
Bonds with one or more sustainable objectives

Credit bonds
Investment Grade corporate bonds
High yield corporate bonds
Emerging Market Debt

Alternative investments
Investments in projects with a focus on renewable energy
Microloans

Learn more about the types of investment

What do you not invest in with Danica Balance Responsible Choice?

Danica Balance Responsible Choice excludes a range of companies, countries and sectors, and your pension savings will not be invested in these. These are those that are involved in the following:

 


Alcohol
Companies that derive more than 5 % of their revenue from alcohol. Such companies include breweries, distilleries and bars/nightclubs.


Breaches of norms
Companies that exhibit harmful behaviour or are involved in problematic activities. For example, companies that violate human rights, pollute water, damage biodiversity, contribute to climate change or are involved in corruption.


Fossil fuels
Companies that derive more than 5 % of their revenue from the production, distribution, processing, transportation or storage of fossil fuels such as coal, oil, gas, bitumen or tar sand – including equipment related to these fuels.


Gambling
Companies that derive more than 5 % of their revenue from gambling. This applies to betting companies, casinos and lottery providers.


Controversial weapons
Companies involved in controversial weapons such as cluster bombs, anti-personnel mines, biological and chemical weapons or nuclear weapons.


Military equipment
Companies that derive more than 5 % of their revenue from military equipment. This includes the production of tanks, munitions, missiles and radar, software and surveillance equipment modified for military use.


Pornography
Companies that derive more than 1 % of their revenue from the production, distribution, or showing of pornography.


Tobacco
Companies that derive more than 5 % of their revenue from the cultivation, processing or production of tobacco products, including leaf tobacco products, electronic cigarettes and snus/nicotine pouches.


Selected countries
Government bonds issued from countries on sanctions lists with the UN, EU, USA, UK or Denmark. In addition, countries that face particular issues – such as those related to human rights violations, corruption or lack of rule of law – are excluded.


The regular Danica Balance also excludes investment in certain companies and sectors but only a selection of those listed above.

Read more about this here

 

The limit is higher than 0 % because there is some uncertainty in determining the revenue from a company’s activities. For example, in the case of fossil fuels, there is a market standard of 5 %.

The standard is set so that your pension savings are not invested in companies that have significant fossil fuel activities. This prevents the exclusion of companies that have minimal activities within the fossil fuels sector and whose turnover is derived from activities other than fossil fuels.

What investment strategies can I choose from?

With Danica Balance Responsible Choice, you can choose the same investment strategies as with Danica Balance. Read more about the investment strategies here. The choice of how large a proportion of your pension saving you want to place in Danica Balance Responsible Choice is entirely yours.

What sort of return can I expect?

Because Danica Balance Responsible Choice has an increased focus on sustainable investments and excludes a wider range of investments, it does not provide 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).

  • Mix high risk profile

    The figures show the expected return for Danica Balance Responsible Choice and the expected return for the regular Danica Balance with an equivalent risk profile. These figures show a theoretical projection of the return based on the Danish Council for Return Expectations’ current predictions for the general development in the markets. The actual return can be higher, the same or lower.




  • Mix Medium risk profile

    The figures show the expected return under Danica Balance Responsible Choice and the expected return under your general Danica Balance scheme with the same risk profile. The figures illustrate a theoretical projection of the return based on the Danish Council for Return Expectations’ current expectations of general market developments. The actual return may be higher, equal or lower.

  • Mix low risk profile

    The figures show the expected return under Danica Balance Responsible Choice and the expected return under your general Danica Balance scheme with the same risk profile. The figures illustrate a theoretical projection of the return based on the Danish Council for Return Expectations’ current expectations of general market developments. The actual return may be higher, equal or lower.