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Goals and strategies for asset management

VFF Pension aims to ensure the long-term stability and healthy growth of its asset portfolio. The overriding goals for our asset management are to make sure that the value of our assets always covers our pension undertakings, in both the long and short terms, and to be able to offer as competitive a bonus as possible over time. The strategy is based on maximising the return based on the risk appetite determined by the board, continuing to diversify our investment portfolio without compromising on future risk-adjusted returns, and integrating sustainable investments into our asset management operations.

An ALM (Asset Liability Management) analysis is conducted annually to secure the best possible balance between various asset categories, with due regard to all applicable regulations. This analysis is used to develop the strategic norm portfolio that will provide the best preconditions for meeting our asset management targets. The balance between the various investment categories is regulated in the investment guidelines set by the board.

Risk handling in asset management

Risk handling is an important part of VFF Pension’s asset management process. It covers identification, quantification, management, monitoring and reporting of risks in asset management. VFF Pension’s long-term risk appetite is reflected in the selected strategic norm portfolio. Risk appetite is the risk one is prepared to take in asset management. Risk appetite in asset management is ultimately regulated by the solvency rating and the traffic-light ratio and by agreed tolerance levels.

Distribution as per norm portfolio

  • Interest-bearing securities 52%
  • Global stocks 24%
  • Swedish stocks 10%
  • Alternative investments 14%

For actual figures on interest rates, consolidation levels, capital managed etc., please refer to Financial information.

If you would like to read more about our capital management, more information is available in the annual report here.

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