PFA Invests

With PFA Invests, you can choose between four different investment profiles where you just have to choose
the one that suits you best. PFA will take care of the rest.

Four investment profiles – is your profile the best match for you?

Investment profiles A, B, C and D have different potentials for a good return and involve different degrees of risk. Profile A comes with the lowest risk and the lowest potential for a high return. Profile D has the greatest possibility of a high return – but also the highest risk.

In all investment profiles, the money is invested in shares, bonds, property and alternative investments through two investment funds: The Low-Risk Fund and the High-Risk Fund.

Log on to My PFA to view your investment profile. Your options depend on the agreement that you and your employer or organisation have with PFA. At My PFA, you can also view your options, and you can go through the Investment Guide and find the investment profile that is the best match for you.

 

Investment profile A

25 % of your savings will be invested in the High-risk fund. 75 % will be invested in the Low-risk fund.

The investments in the High-Risk Fund will be gradually reduced to approximately 10 % at the time of your retirement. The composition of the investments in profile A is comparable to a traditional savings plan in the average interest rate environment.

With profile A, you have the possibility of linking payout protection cover to your plan. We do not recommend this option though.

Investment profile B

50 % of your savings will be invested in the High-Risk Fund. 50 % will be invested in the Low-Risk Fund.

The investments in the High-Risk Fund will be gradually reduced to approximately 20 % at the time of your retirement.

With profile B, you have the possibility of linking payout protection cover to your plan. We do not recommend this option though.

Investment profile C

75 % of the savings will be invested in the High-Risk Fund. 25 % will be invested in the Low-Risk Fund.

The investments in the High-Risk Fund will be scaled down to approximately 30 % at the time of your retirement.

Investment profile D

100 % of the savings will be invested in the High-Risk Fund.

The investments in the High-Risk Fund will be scaled down to approximately 40 % at the time of your retirement.


Make your pension plan more climate-friendly with PFA Climate Plus

PFA Climate Plus enables you to place your pension savings in particularly climate-friendly investments. From the outset, equities in PFA Climate Plus will emit 60 % less CO2 than the world equity index. The goal is for the investments in PFA Climate Plus to be CO2-neutral by 2025 and to remove more CO2 from the atmosphere than they emit already by 2030. As with the rest of PFA’s investments, the investments in PFA Climate Plus are also selected based on respect for social conditions and corporate governance – also called ESG.

Integrated gradual reduction of risk in all profiles

The greater the potential for returns, the greater the potential for losses.
 
The closer you are to your retirement age, the harder it becomes to make up for potential losses. Therefore, the investments with the highest risk will be gradually reduced as you approach retirement – the closer you get to retirement, the lesser risk will be involved when we make investments on your behalf.
The relationship between risk and return
Investment returns vary from year to year, and both shares and bonds may yield negative returns. There is often a connection between risk and return. The greater the risk you are willing to take, the greater the potential for obtaining a high return. Typically, shares generate higher returns than bonds. However, shares also fluctuate the most – which means that the risk is higher.
Risk reduction 

PFA recommends investment profile C

When it comes to risk appetite, everyone has their own preferences. Your choice of investment profile impacts your pension savings and with that your future, and therefore the proportion between risk and return should suit you.

Generally, we recommend that our pension customers choose profile C, as it is our assessment that for the clear majority of our customers, this profile has the most appropriate balance between risk and return.

That said, we always recognise that the choice of profile is a question of personal temperament and that it depends on your financial situation. Therefore, the profiles A or B may be a better option for you who have less risk tolerance. Profile D may be the perfect match if you prefer to invest your savings with the potential of high returns - even if it comes with a higher risk of incurring losses.

In all the profiles, the long-term return will typically outperform the return generated in the traditional average interest rate environment. The advantage of the profiles is that we have more freedom when it comes to investing – for your benefit. After all, having more freedom to invest means a potential for generating better return.

Get an immediate recommendation

A, B, C or D? Which profile is the best match for you? You can quickly find out by answering a few simple questions at My PFA about your return expectations and your risk appetite. All you need to do is log on to My PFA and find the guide under Investments.