About Sampension Administrationsselskab A/S 

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The company is bound in legal transactions by the joint signatures of:

1. all members of the Board of Directors, or
2. the Chairman of the Board of Directors and a member of the Board or a member of the Executive Board, or
3. the Deputy Chairman of the Board of Directors and a member of the Board or a member of the Executive Board, or
4. two members of the Executive Board.

  
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The entire Board of Directors may grant powers of procuration to other persons to bind the Company either jointly with a member of the Executive Board or jointly with another so empowered person, including for the sale and mortgaging of real property.

Sampension Administrationsselskab A/S manages the investments of Sampension Livsforsikring, The Pension Fund for Technicians- and Bachelor of Engineering (ISP), The Pension Fund Architects & Designers (PAD) and The Pension Fund for Agricultural Academics and Veterinary Surgeons (PJD). This is done under Investment Policies and Regulations approved by the respective boards of the four mentioned pension companies, which in turn are subject to Solvency II, including Prudent Person-requirements, and further Danish law.

Investment policies

The Investment Policies reflect the nature of the different pension liabilities and goals. The pension companies have client groups with both guaranteed pensions with profit, pensions with a stated intended annuity with profit and fully unguaranteed pensions. The investment portfolio is divided to reflect these different liabilities.

To manage the interest rate risk related to the guaranteed and intended pensions Sampension Livsforsikring and ISP manage separated liability hedging derivatives portfolios utilizing government bonds with long maturities, interest rate swaps and other derivatives. The investment portfolios of PAD and PJD reflect the conditional guarantees embedded in the with-profit pension products of these two pension funds and since the beginning of 2021 also fully unguaranteed pension products.

Derivatives are used to reduce investment risks, reduce pension liability mismatch risks, manage liquidity and, where relevant, as instruments for an efficient implementation of the investment portfolio.

Investment management

The overall investment risks are monitored and managed by Sampension Administrationsselskab within these Investment Policies and Regulations. The implementation utilized both internal and external investment management. Management of risk overlays, indexed risk exposures, tactical allocation, interest risks, government bonds and European covered bonds, counter party risks, FX risks and domestic real estate is primarily conducted internally, whereas equity risks, credit risks and alternative investments primarily are implemented through external investment managers.

Assets

Alternative investments

July 2023
Sampension's Administrationsselskab manage alternative investments worth DKK 70 billion. That amount equals 26% of our net-investment assets. The pension companies plan to invest a further DKK 15 billion in alternative investments over the next five years.

What are alternative investments?

Our alternative investments can be divided into the following seven asset classes: Property and PPP, infrastructure, commodities, forestry, private equity, structured credit and global macro hedge funds.

How does Sampension conduct its investments?

The pension companies invest directly in a range of financial instruments such as bonds, equities, financial derivatives as well as in property or other real assets. The group also invests in a range of externally managed investment funds. 

The pension companies organise their investments in several portfolios (internal funds) with specific investment guidelines. They have separate cash and custodial accounts for these portfolios, but they are all assets of the same legal entity. Similarly, ISDA-covered financial derivatives are booked in a number of these internal funds but are all operated under the same ISDA between each relevant counterparty and pension company.

Sampension Livsforsikring conducts its investment activities through a range of subsidiaries of which most are wholly owned and controlled by Sampension Livsforsikring. These subsidiaries include Sampension Forestry K/S, Sampension Global Real Estate K/S, Sampension Private Equity K/S and Sampension Structured Credit K/S which are all controlled through Komplementarselskabet Alternative Investments ApS, the general partner (GP).

Komplementarselskabet Alternative Investments Aps  and Komplementarselskabet EJI ApS operate under separate powers of procuration and special powers of attorney but are managed and administered by Sampension Administrationsselskab A/S.

Policy and guidelines of Responsible Investments can be found under Annual Reports.

Sampension expects the companies we invest in to comply with applicable legislation and international rules and standards, including the OECD Action Plan on Base Erosion and Profit Shifting (BEPS) and the European Commission tax transparency initiative. This expectation applies regardless of corporate setup or organisation, allowing for any specific modifications in this respect. Our expectation applies with respect to Sampension’s investments in both equity interests and debt instruments.

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