Savings

In PFA Plus there are 3 investment concepts – PFA Invests, PFA Flexible and You Invest. In addition, you can choose whether your savings are to be invested with a broad investment focus that is continuously adjusted to the global situation, with an enhanced climate focus or in a simpler solution with index-linked investments.

You can choose to place part or all your savings in PFA Plus, PFA Index Plus and PFA Climate Plus

 
PFA Plus

In PFA Plus, your savings are invested based on PFA’s entire investment universe. This means that your savings are invested in equities, bonds, properties, private equity, infrastructure and forest.

PFA’s investment experts continuously adjust your investments to the global situation. At the same time, PFA’s investment experts use various tools to reduce risks and protect your savings against major market fluctuations.  

Read more about PFA Plus
 

 
PFA Index Plus

In PFA Index Plus, your savings are invested in a broad portfolio of listed equities and bonds that follow selected predefined indices. This means that the value of your pension savings will increase if the selected indices rise. Similarly, the value of your pension savings will fall if they fall.

With PFA Index Plus, you opt out of active management of your savings. This means that your savings will not be continuously adjusted by PFA’s investment experts in relation to the current global situation.

The risk in PFA Index Plus will be comparable to PFA Plus, but as the product is simpler, we expect that the return over a lifetime may be slightly lower than in PFA Plus, although in practice the return may be higher, the same or lower.  

Read more about PFA Index Plus

 

 
PFA Climate Plus – with extra focus on climate

You can choose to place part or all your savings in PFA Climate Plus, which is a savings product that allows you to save up for retirement with increased focus on climate. In PFA Climate Plus, your savings are invested in companies that promote the green transition by contributing to a low-emission economy. This may for example be wind and solar energy, forest and sustainable properties. In PFA Climate Plus, no investments are made in oil, coal and gas companies or in companies with strong links to these sectors. The equities in PFA Climate Plus emit 60 per cent less CO2 than the global equity index.  

As a rule, the return in PFA Climate Plus is expected to be slightly lower and have slightly larger short-term fluctuations than the return on your other pension savings in PFA, as the investments, due to the additional climate considerations, are based on a smaller pool of assets.   

Read more about PFA Climate Plus

PFA Flexible 


If you do not want the risk to be automatically reduced as in PFA Invests, you can choose PFA Flexible, which has no automatic reduction and where you decide the allocation between high and low-risk funds yourself. These funds are the same as those used for Profile Low, Medium and High in PFA Invests. You can change the allocation between high and low-risk funds or the proportion in PFA Climate Plus and/or PFA Index Plus on mitpfa.dk. PFA Flexible cannot be combined with PFA Invests.

The savings are normally rebalanced semi-annually to the intended proportions in the funds, but in the interim periods the actual proportions may fluctuate due to market movements.

You Invest


You can also choose to place all or part of your savings in You Invest. Here, you can choose yourself from among the funds offered by PFA. The internal funds are managed by PFA, while the external funds are managed by other asset managers. You decide whether your regular payments are to be automatically invested based on a fixed allocation or whether the investment is to be made manually from time to time.

How are your savings to be invested?


High, Low or Medium? Which profile is the best match for you? And should a part of your savings be invested in PFA Climate Plus? You can quickly find out by answering a few simple questions in the investment guide at My PFA about your return expectations, your risk appetite and climate preferences. 

Try the Investment Guide at My PFA

PFA CustomerCapital – a unique profit and risk sharing model

 
When PFA Pension was founded in 1917, the owners decided that they were only to receive a very limited part of the profit. This is still the case, and it means that the vast majority of PFA Pension's profits are passed on to the customers. For one thing, the payment is made through PFA CustomerCapital, which can be compared to an investment in PFA Pension allowing you to obtain a high interest on part of your savings. 

Just like other investments, CustomerCapital is subject to risk. Together with the equity, CustomerCapital forms part of PFA Pension’s capital base, which is to cover any losses that PFA Pension may suffer. Therefore, CustomerCapital may decrease and, in the worst case, run out.

The part of CustomerCapital that is included in your own savings is called Individual CustomerCapital, and it will carry at least the same return as PFA Pension's equity. In addition, there is a possibility of an extra interest through PFA Pension's common reserves, also called Collective CustomerCapital, where PFA Pension determines part of the interest. When CustomerCapital is linked to your plan, an amount currently corresponding to 1 per cent of your payments, single payments and transfers from other companies to savings in PFA Plus will go to Individual CustomerCapital. The interest on Individual CustomerCapital will be transferred to the other savings. However, if the interest is negative, the Individual CustomerCapital will be reduced..

Read more about CustomerCapital and see the interest 

You can deselect CustomerCapital

At present, 1 per cent of the payments that you make to your savings plan under PFA Invests, PFA Flexible and You Invest will go to Individual CustomerCapital. If you do not want CustomerCapital, you can deselect CustomerCapital for your future payments at My PFA (mitpfa.dk). If you deselect CustomerCapital, payments will no longer be made to your Individual CustomerCapital. However, you cannot change already accumulated Individual CustomerCapital into ordinary savings.