Goals and strategies for asset management
VFF Pension must have long-term stable, responsible and sustainable value growth. The overall goals of asset management are to ensure that the value of assets always covers the pension commitment, both in the long and short term, to be able to offer as competitive a return as possible over time, and to strive to have a portfolio that is in line with the Paris Agreement and the UN global sustainability goals.
The strategy to achieve the above goals is based on maximizing the return based on risk appetite decided by the Board, continue to work on diversifying the portfolio without sacrificing future risk-adjusted return and continue to integrate sustainable investments in management that strive to be in line with the Paris Agreement and the UN global sustainability goals.
An ALM (Asset Liability Management) analysis is performed annually, the purpose of which is to identify the asset mix that is best adapted to achieve the overall goals in asset management, taking into account current regulations. The distribution between the various asset classes is regulated in investment guidelines established by the Board. The investment guidelines can be downloaded under Forms and documents.
VFF Pension must invest responsibly and sustainably. Integrating sustainability into the investment process therefore becomes a natural part of asset management. If you want to read more about VFF Pension’s work with sustainable investments, the information can be found under Sustainable investments.
Risk handling in asset management
Risk handling is an important part of VFF Pension’s asset management process. It includes identification, measurement, management, monitoring and reporting of risks in asset management. VFF Pension’s long-term risk appetite is reflected in the chosen strategic normal portfolio. Risk appetite is the risk that one is prepared to take in asset management. Risk appetite in asset management is ultimately governed by the level of the venture capital ratio, RKK, and the minimum capital ratio, MKK, as well as by decided tolerance levels.
Distribution as per norm portfolio
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.
