VFF Pension aims to have long-term and stable growth in economic value. The goal is to try and generate 4% in annual returns on investments while maintaining an acceptable risk level.
The investment portfolio – the proportion between the various types of asset – is regulated by the Board’s set investment guidelines.
An ALM (Asset Liability Management) analysis is carried out annually to secure the best possible proportion between different types of asset with due regard to the applicable regulations. This analysis is undertaken to set the revenue target and the proportion in the normal portfolio at the annual review of the investment guidelines.
Asset management process
VFF Pension’s asset management goal is that revenue from the entire asset portfolio and its various sub-portfolios should exceed the return for each index where this is relevant and measurable. This is a professional way to handle financial risks, with the focus on healthy diversification within and between each different type of asset and market, and this approach is expected to help achieve the revenue target.
VFF Pension aims to serve as a responsible investor which chooses funds with a view to achieving a balance between financial, environmental and social values. VFF Pension works to invest in companies that follow international norms for human rights, working conditions, environmental care and anti-corruption measures. VFF Pension also strives to avoid investments in companies involved in controversial weapons and in the production of tobacco and pornography.
VFF Pension uses an external partner to review all its funds twice a year. The results of this review form the basis for VFF Pension’s advocacy, which involves dialogue with the asset manager with the primary aim of persuading such companies to make necessary changes rather than exclude them. In cases in which these advocacy attempts do not deliver the desired results, VFF Pension can take a decision to divest from the relevant fund.
Distribution as per norm portfolio
- Interest-bearing securities 55%
- Global stocks 20%
- Swedish stocks 10%
- Real estate funds 5%
- Alternative investments 10%
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.