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Mix high risk profile
Mix high risk profile
The figures show the expected return under Danica Balance Sustainable 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.
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Mix Medium risk profile
Mix Medium risk profile
The figures show the expected return under Danica Balance Sustainable 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.
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Mix low risk profile
Mix low risk profile
The figures show the expected return under Danica Balance Sustainable 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.
What does Danica Balance Responsible Choice invest in?
With Danica Balance Responsible Choice, your pension savings are invested with a more targeted focus on promoting sustainable progress. A minimum of 75% of the investments in Danica Balance Responsible Choice meet out criteria for sustainability. In brief, these are investments that in our assessment seek to contribute to one or more of the UN Sustainable Development Goals – while still working to secure you an attractive return on your investments. In practice, each investment’s contribution to the UN Sustainable Development Goals is different.
Investments may include companies whose products and solutions in combination with their operations and manufacturing processes are seeking to solve global challenges related to climate, food production, the environment and health. This means that we take into consideration both what the company produces and how it produces its product. On the basis of an overall evaluation, we assess whether the company is making a sufficient contribution to the UN Sustainable Development Goals.
At the same time, we aim to ensure that your investments do not cause significant harm to society. In support of this ambition, 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 labour rights, cause significant damage to 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 Mix
Responsible Choice
Shares
Actively selected shares
Shares from an index
Bonds with a sustainable focus
Green bonds
Social bonds
Corporate bonds
Investment Grade corporate bonds
High yield corporate bonds
Emerging Market Debt
Alternative investments
Investments in projects with a focus on renewable energy
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
Certain types of companies that derive more than 5 % of their revenue from alcohol. Such companies include breweries, distilleries and bars/nightclubs.
Breaches of norms
Certain 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
Certain types of companies that derive more than 5 % of their revenue from gambling. This applies to betting companies, casinos and lottery providers.
Controversial weapons
Certain types of companies involved in controversial weapons such as cluster bombs, anti-personnel mines, biological and chemical weapons, nuclear weapons outside the Non-Proliferation Treaty, ammunition made with depleted uranium, or ammunition that uses white phosphorus.
Military equipment
Certain types of 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
Certain types of companies that derive more than 1 % of their revenue from the production, distribution, or showing of pornography.
Tobacco
Certain types of 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.
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 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).
What if I have a guarantee on my savings?
You can choose Danica Balance Responsible Choice even if you have a guarantee attached to your savings. However, if you have an active guarantee, you currently cannot access all the funds that have increased focus on sustainability.
When you have chosen the standard Danica Balance and your Balance Guarantee applies, you invest in Danica Pension Offensiv and one or more special bond funds with different interest rate sensitivity:
- Danica Pension Korte Obligationer
- Danica Pension Lange Obligationer
- Danica Pension Ultralange Obligationer
We are able to provide you with a payment guarantee only if you have investment in these funds, which invest in traditional government and mortgage bonds.
However, the amount of sustainable bonds currently available is not yet sufficient to enable us to manage varieties of Danica Pension Lange Obligationer and Danica Pension Ultralange Obligationer with sustainable bonds in an appropriate manner, so in these cases we must continue to invest in traditional bonds in Danica Balance Responsible Choice.
Nevertheless, the amount of sustainable bonds available is sufficient to enable us to offer a fund – Danica Pension Korte Obligationer Responsible Choice – that invests exclusively in short-term sustainable bonds.
