VFF Pension wants long-term and stable growth in economic value, and the aim is to generate at least 4 % in returns on invested assets. The portfolio is regulated via investment guidelines set by the board.
The capital management process
VFF Pension’s aim with capital management is to have a high, steady return so as to generate an annual return of 4 % with an acceptable risk level. Another goal is that the return for portfolio management as a whole and for its various sub-portfolios should exceed the return for each respective comparable index where this is relevant and quantifiable. This is expected to be achieved through professional handling of the financial risks in day-to-day management operations, which primarily means good diversification within and between asset types and markets.
In its work on capital management, the Board is responsible for establishing investment guidelines that regulate how the managed capital shall be distributed between the various asset types. An annual review of the investments guidelines is carried out. An ALM (Asset Liability Management) analysis is conducted with the aim of determining the strategic allocation and limits that form the basis for revision of the guidelines.
VFF Pension aims to serve as a responsible investor which, in its choice of companies and funds, works to achieve a healthy balance between financial, environmental and social values. Investments are only made in companies and funds that adequately follow the demands stipulated in international conventions signed by the Swedish state.
Distribution as per norm portfolio
- Interest-bearing securities 55%
- Global stocks 20%
- Swedish stocks 10%
- Real estate 8%
- Alternative investments 7%
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.