The coverage ratio at the three large KLM pension funds rose by more than 6 percentage points over the third quarter, thanks to rising long-term interest rates and positive returns on investments.Both the €6.3bn pension fund for ground staff (the Algemeen Pensioenfonds KLM) and the €2bn scheme for cabin staff (Cabinepersoneel) reported quarterly returns of 1.8%, resulting in year-to-date returns of 0.4% and -0.1%, respectively.The schemes said they benefited in particular from rising interest rates, which have risen by approximately 0.2 percentage points since June.With funding of 120.3% and 120.6%, respectively, at September-end, the schemes’ coverage now exceeds the government’s required financial buffers. Both pension funds reported a quarterly return of more than 5% on their equity holdings, as well as a 1.8% return on real estate.However, due to increasing in interest rates, they incurred losses of 0.3% and 0.2%, respectively, on their fixed income investments.In addition, they lost 0.1% and 0.2%, respectively, on their interest hedge – covering between 45% and 55% of the interest risk on their liabilities.They also took a 0.3% loss on their equity hedge, on the back of rising markets.The €7bn KLM scheme for flying staff (Vliegend Personeel) reported a 1.7% return during the last quarter, and saw its funding improve to 130.1%.Blue Sky Group manages the KLM pension funds’ assets.
Month: September 2020
The CIO of the pension schemes for the Daily Mail General Trust (DMGT), a UK newspaper, has warned asset managers against passing on the costs incurred with the regulatory changes coming from Europe.Mike Weston, who heads up the investments for the three defined benefit (DB) schemes, with around £2bn (€2.4bn) in assets, warned managers in a speech about the cost of regulation.Speaking at the National Association of Pension Funds (NAPF) Investment Conference, Weston said he would not accept any cost increase from managers due to the European Market Infrastructure Regulation (EMIR).“For existing mandates,” he said, “asset managers should not even think about passing on those costs to us. They have to absorb it into margins. “The question to ask asset managers is what benefits you are going to get from the extra costs. If they can explain how extra costs are going to benefit the scheme, then great – if not, it is just an extra cost of them doing business.”Weston was relaxed about the impact of new regulations and said additional “sensible” regulations should benefit pension schemes in the long run.This echoed comments by Chris Hitchen, a trustee at RPMI, a railways pension scheme, who in a separate conference session said regulations such as the financial transaction tax (FTT) could benefit pension schemes with long-term investment interests by discouraging high-frequency trading.“By lobbying with the NAPF, we can ensure additional regulations that are sensible,” Weston said.“If they genuinely make the financial system safer and more transparent, then they will be worth it for pension schemes. Effectively, the risk costs will come out of the market.”James Walsh, senior policy adviser on European regulations for the lobby group, conceded Hitchen and Weston’s point, but questioned the FTT’s appropriateness.“Maybe it would be good to have some regulatory solution to high-frequency trading,” he said.“There are questions as to whether the FTT is the right way to do that, but clearly there may be a case for addressing market behaviour.”This came after the chair of the NAPF, Ruston Smith, accused Brussels of only acting for the few, and not the majority, with its legislative agenda for European pension schemes.Weston also said the DMGT pension schemes were not “overly preparing” for the impact of EMIR or the Alternative Investment Fund Managers Directive (AIFMD).Because the scheme has a relatively basic and simplified asset allocation, he said, regulations coming out of Brussels have not caused him too much trouble.“We will be speaking to asset managers,” he said, “not really about current mandates, but what might come down the track, and whether there will be an impact.“At a higher level, we will be speaking to our investment consultants about whether we will shift our asset allocation, and what potential impact we should be aware of.”
Edward Mason, the Church Commissioners’ head of responsible investment, said in a Church of England blog post: “It is clear from the latest assessment report of the Intergovernmental Panel on Climate Change (IPCC), released this year, that the world is on a path towards dangerous climate change. “It is imperative that, over the decades ahead, we make the transition to a low-carbon economy.” The CIG’s largest members have helped establish an investor initiative to engage on climate change with the 10 largest extractives and utilities companies listed on the London Stock Exchange (LSE).The coalition also includes the Local Authority Pension Fund Forum and Rathbone Greenbank, the ethical fund manager, and is led by CCLA Investment Management, the specialist church and charity fund managers. Every year, the performance of global companies on climate change is rated by CDP (formerly the Carbon Disclosure Project), an NGO that collects and analyses data for this area.It is the investors’ initiative – called ‘Aiming for A’, after CDP’s highest rating (A) – which has prepared the shareholder resolution.Mason said: “We have chosen to file shareholder resolutions at BP and Shell because they have the biggest carbon footprints of all the companies listed on the LSE, and they are yet to achieve A ratings (they are both rated B).”He added: “The resolutions are supportive but stretching. We want the companies to be sustainably profitable.“The idea is to give all the shareholders of both companies the opportunity to signal that, like us, they want to see BP and Shell adapt their businesses over the long term for a low-carbon economy.” The special resolution – ‘Strategic resilience for 2035 and beyond’ – and amplified by a supporting statement, calls for routine annual reporting from 2016 to include further information about ongoing operational emissions management; asset portfolio resilience to the International Energy Agency’s scenarios; low-carbon energy research and development and investment strategies; relevant strategic key performance indicators and executive incentives; and public policy positions relating to climate change.The resolution says this additional ongoing annual reporting could build on the disclosures already made to CDP and/or those already made within the company’s energy outlook, sustainability review and annual report.A BP spokesman said: “We have had constructive discussions with CCLA and are aware they intend to file a resolution for our AGM in April 2015.“We will carefully consider it and respond appropriately before the meeting.”The shareholder resolution for Shell’s AGM will be very similar.The group’s UK AGM takes place in May 2015, shortly after its Netherlands AGM. The Church Commissioners and Church of England Pensions Board are to co-file shareholder resolutions on climate change at the annual general meetings of BP and Shell next year.The two bodies, which together own £7.7bn (€9.8bn) worth of assets, are members of the Church Investors Group (CIG), made up of institutional investors from mainstream Christian denominations and church-related charities, predominantly in the UK and Ireland.As a whole, the group’s investments total £15bn.The Central Finance Board of the Methodist Church is also co-filing the resolutions, as are some other CIG members.
Syntrus Achmea – Fiduciary management guru Anton van Nunen has left his job as director of the Strategic Pensions Management (SPM) division at Dutch pensions provider and asset manager Syntrus Achmea. Johan Cras – who has had joint responsibility for fiduciary advice since October 2012 – has now taken on Van Nunen’s position. Van Nunen is to relaunch his consultancy, which he quit following his appointment at Syntrus to avoid conflicts of interest.PME – The €40bn pension fund for the Dutch metal industry has appointed Eric Uijen as chief executive. He is to succeed Hans van der Windt, who is to retire on 1 July. Currently, Uijen is director of the notaries scheme SNPF, which is preparing a merger with the pension fund for notaries’ staff in the Netherlands. At the same time, he is chairman at SBZ, the industry-wide scheme for care insurers.Momentum Investment Solutions & Consulting – The company has been appointed to act as the CIO for Lloyds Bank’s pension schemes. Richard Cooper, head of Momentum ISC, will become the CIO for the pension schemes during the term of the appointment and lead the teams responsible for the management and oversight of the investment of the group’s pension scheme assets. Before joining Momentum in August 2014, Cooper was at Mercer for 20 years, where he was a senior partner in the Investment Business.Amundi – Two senior fixed income portfolio managers have been added to the London-based Global Fixed Income team. Myles Bradshaw, head of global aggregate strategies, joins from PIMCO, where his main focus was European macro strategy. David Ric, head of absolute return strategies, joins from BlackRock, where he was responsible for rates strategies across institutional total return G10 currency, euro and sterling-denominated portfolios.Newton Investment Management – Henrietta Jowitt and Susan Noble have been appointed independent non-executive directors to the board. Noble has more than two decades of experience as an investment management professional, including key roles at Robert Fleming Asset Management and Goldman Sachs Asset Management. Jowitt has held a number of senior marketing roles within the financial services industry, with stints at private equity house Advent International Corporation and global asset manager Schroders.Erste Asset Management – Stepan Mikolasek has been appointed head of equity. He was member of the board and CIO at Investiční společnost České spořitelny, the Czech investment company of the Erste Asset Management group. He will be in charge of the newly created equity management team of Erste Asset Management. At the same time, Peter Szopo will become head of the equity team in Vienna and chief equity strategist.Polaris Private Equity – The Danish/Swedish lower mid-market private equity investor has appointed two new members to its team. Martin Lindh joins as investment manager from SEB, while Thorsten Madsen, who also joins as an investment manager, was previously with Implement Consulting Group.Schroders – Dan McFetrich has been appointed as a global sector specialist within the Global & International Equities Team. He joins from Fidelity Worldwide Investment, where he had worked since 2008 as senior industrials analyst. Before then, he held roles at Dresdner Kleinwort and Nomura Asset Management.Meketa Investment Group – Timothy Atkinson has been appointed senior vice-president. Atkinson, who joined Meketa in 2008, was previously based in the firm’s Boston office. He joins the London office to perform manager due diligence across the EMEA, specialising in credit and other debt strategies.Skagen Funds – The Norwegian fund manager has appointed Sophie Brodie as communications manager for its UK business. She joins from Jupiter Asset Management, where she worked for seven years as investment communications manager.Stanhope Capital – Edward Clive, a senior director within the firm’s investment research department, has been appointed head of private funds. He previously worked at Lazard and Vantage Group, and has been with Stanhope for five years. EIOPA Stakeholder Group, ING CDC Pension Fund, Universities Superannuation Scheme, Syntrus Achmea, PME, SNPF, SBZ, Momentum Investment Solutions & Consulting, Amundi, Newton Investment Management, Erste Asset Management, Polaris Private Equity, Schroders, Meketa Investment Group, Skagen Funds, Stanhope CapitalEIOPA Stakeholder Group – Philip Shier has been elected chair of the European Insurance and Occupational Pensions Authority’s pension stakeholder group, following the resignation of Benne van Popta. Aon Hewitt actuary Shier, who was appointed to the Occupational Pensions Stakeholder Group (OPSG) in 2011 and reappointed in 2013, will serve out the remainder of Van Popta’s two-and-a-half-year term. IPE understands that members of the OPSG elected him during the group’s first meeting of the year, held in EIOPA’s offices in Frankfurt on 9 March.ING CDC Pension Fund – Fook Ley Wong has been appointed senior portfolio manager at ING’s new CDC Pension Fund. He will be co-responsible for the scheme’s matching and return portfolio. During the past two years, Wong has been in charge of portfolio construction, selection and monitoring of the global equity portfolio for the clients of the former DPFS, the provider for SPH, the €10bn pension fund for general practitioners. DPFS was taken over by the €188bn asset manager PGGM in 2013. Wong started at DPFS as senior portfolio manager in 2008 after two years as senior investment manager at PGGM. Between 1996 and 2006, he served as controller, senior performance analyst and fund manager at the €110bn asset manager MN.Universities Superannuation Scheme – Guy Coughlan has joined the multi-employer defined benefit (DB) scheme for the UK higher education sector as chief financial risk officer. He joins from Pacific Global Advisors. The newly created position will see Coughlan manage the integration of the scheme’s risk management strategies, and develop and oversee its funding strategy. Coughlan joined the scheme as a trustee in January and chairs its risk committee. He also spent 17 years at JP Morgan, where he left as head of pensions advisory for Europe.
The direct lending portfolio will complement other inflation or interest-rate linked investments in the fund’s hybrid portfolio, which aim to account for 12.5% of the pension fund, or £3bn, by 2017.Other hybrid assets include investments in solar power, property and long-term leases including a £330m commercial property investment in Manchester, currently leased to the Royal Bank of Scotland (RBS).After amending its statement of investment principles last year, the PPF dropped its 70/30 growth/LDI basic portfolio split and created the hybrid asset class to allow it more flexibility to invest in newer asset classes.When searching for a direct lending manager, the PPF said its preferred choice would only lend on an investment grade basis and have capability to source deals directly, or be involved in primary market syndications.Pramerica, one the world’s largest private placement managers, said it had over $20bn (€17.5bn) invested in private fixed income outside of North America, and began lending in Europe in 1996.Direct lending as an asset class has grown in recent years, with some pension funds keen to address the lending gap left by banks’ withdrawal from the market.Read more about direct lending in the recent issue of IPE The UK Pension Protection Fund (PPF) has awarded a £400m (€549m) direct lending mandate to Pramerica Investment Management as it looks to grow its hybrid assets portfolio.After launching a tender over 18 months ago, the £22.6bn PPF settled on the US firm to have it source £400m of direct loans in the next two years.The loans will fall into the lifeboat fund’s hybrid asset class; a growing allocation of investments that act as liability matching assets with growth potential.The PPF’s exposure to direct lending – its first foray into the asset class – will see Pramerica offer UK corporates fixed-rate or inflation-linked loans with maturities in excess of five years.
The UK government has launched a consultation on corporate governance in the country that includes the idea of intra-company pay ratios as one means of addressing concerns raised by institutional investors about excessive pay. The department for business, energy and industrial strategy (BEIS) unveiled the green paper today.It is designed to “stimulate a debate on a range of options for strengthening the UK’s corporate governance framework, including options for increasing shareholder influence over executive pay and strengthening the employee, customer and supplier voice at boardroom level”.One of the topics it is seeking feedback on is corporate governance in privately held businesses. The government said it did not have “preferred options at this stage”.The consultation comes two days before the PLSA is due to publish its AGM report.Luke Hildyard, stewardship and corporate governance policy lead at the association, said it would highlight “how our pension fund members feel about current levels of executive pay” and set out how satisfied pension funds were with respect to asset managers fulfilling their stewardship responsibilities.“Our members are concerned by the rising levels of executive pay and believe the justification for this increase is weak,” said Hildyard.“We are pleased the government’s green paper is expected to include proposals we have previously advocated, including the publication of intra-company pay ratios.”The UK’s Financial Reporting Council (FRC), responsible for the country’s corporate governance and stewardship codes, welcomed the government’s “wide-ranging” consultation.The government green paper comes after the BEIS select committee earlier this year carried out a corporate governance inquiry, with the FRC noting that it made recommendations as part of this, such as on developing the role of the remuneration committee.The FRC said it stood “ready to develop and implement these proposals to help support a strong economy and meet the needs of wider society”.Leon Kamhi, head of responsibility at Hermes Investment Management, said the measures proposed by the government “look set to strengthen investors’ hand on pay, and it is now incumbent on both companies and us as investors to respond to the challenge of excessive executive remuneration”.Publication of a CEO-to-median-employee pay ratio, he said, was “not a panacea” but would provide welcome increased transparency, “as it puts pressure on boards to explain the rationale behind the level of executive remuneration and disparities in pay across the organisation”.He noted that the government did not propose elected employees on boards, a measure Hermes IM would have liked to see.Employee representation on boards is a measure prime minister Theresa May called for in corporate governance comments in her early days in office, although she has since backed away from this.Frances O’Grady, general secretary at trade union TUC, said the government’s proposals were “disappointing” and would “not do enough to shake-up corporate Britain”.“This is not what Theresa May promised,” she said.“We need the voice of elected workers in the boardroom, rather than on advisory panels.”
First, the abuse of social media to distort public thinking is a major problem. The inability to distinguish fake news from real and the levelling of credibility between major news sites and fringe has led to miseducation on a massive scale. Sikorski argued that the Brexit Leave campaign issued “a billion ads with a tsunami of fake news”. That may be a controversial statement but what is less so is that, as he pointed out, the downside of social media is the anonymous targeting of individuals whose views are not agreed with. Such activities would be condemned in the real world, and Sikorski argues that they should be regulated, as people need to have educated views based on facts, not lies. Joseph Mariathasan considers Radek Sikorski’s keynote speech at this year’s IPE Conference in BerlinPoland has had the most successful 25 years in the last 400, declared Radek Sikorski, Poland’s former foreign minister in his keynote address at the IPE Conference & Awards in Berlin. As he pointed out, average salaries were now close to 70% of the EU average, and its GINI coefficient is dropping, indicating a more equal distribution of wealth.Yet, despite the huge improvement in living standards and opportunities, Poland has also been in the first wave of European countries electing populist governments. Sikorski raised some profound issues that are worth debating, whether one agrees with them or not. He sees a commonality behind the factors leading to the current political situations in Poland, Brexit and Donald Trump’s election at president in the US.Sikorski argues there are three key factors underlying all three phenomena and that have created vulnerabilities that need to be fixed. Radek Sikorski addresses the audience at this year’s IPE Conference in BerlinSikorski’s second point was the perception of a loss of control. In Poland, German chancellor Angela Merkel’s promise to allow a million refugees into her country caused consternation, as, under the Schengen rules, they can move anywhere. As Sikorski pointed out, Poland is the most ethnically homogeneous country in Europe. Sikorski argued that controlling who lives in your territory is a legal right and is not racism. Yet against that, he did not address the question of how Europe should have reacted to a refugee and humanitarian crisis on its borders.Finally, Sikorski raised the issue that the public perception of capitalism is that it is unfair. The rewards are not given as a function of ability in a just manner.Restoring confidence in ‘capitalism’ is certainly a worthy objective, but Sikorski’s proposed solutions, I fear, are only a very small part of any solution.He focused on three things: First, tax havens and a need to prevent EU citizens and companies from having accounts in tax havens; and second, banking bonuses based on the amount of loans bankers make. As he pointed out, Poland’s first wave of foreign debts were not paid back in full but had to be replaced by Brady bonds. Despite the losses for investors, the bankers who made the loans got paid their bonuses. And third, transparency of ownership. Thirty-five percent of London property, argued Sikorski, is foreign owned, and, as a result, areas of London are empty, with property being seen just as a safe store of value for foreign investors.Few would dispute the issues on capitalism Sikorski raises. But there are many other even more important issues he failed to mention – most notably perhaps, Thomas Picketty’s thesis in his best-selling book ‘Capital in the Twenty-First Century’ that, as the rate of capital return in developed economies is persistently greater than the rate of economic growth, it will unduly reward the owners of capital rather than labour.Income inequality in OECD countries is at its highest level for the past half century. The average income of the richest 10% of the population is about nine times that of the poorest 10% across the OECD, up from seven times 25 years ago. Given that, is it so surprising we see the rise of populist movements across the world?Joseph Mariathasan is a contributing editor at IPE
North Yorkshire County Council has chosen Leadenhall Capital Partners to manage an allocation to insurance-linked securities (ILS) for its pension fund.The £3bn (€3.5bn) North Yorkshire Pension Fund launched the tender in January, explaining that it was prompted by an “urgent review” of its investment portfolio in light of risks associated with the UK’s departure from the European Union.According to the search notice, the public sector pension fund was planning to allocate 3.3-5% of total assets to the ILS mandate. This would be equivalent to around £110m-£165m.The pension fund previously said it wanted to be in a position to invest in ILS by June, as the asset class could only be accessed twice a year and June was the next intake. North Yorkshire Pension Fund is part of the £43.7bn Border to Coast asset pool together with 11 other local government pension schemes (LGPS). London CIV launches first fixed income fundLondon CIV has confirmed the appointment of CQS as the manager of a multi-asset credit fund, the first of a set of fixed income strategies the pooling vehicle is developing for its member LGPS funds.CQS was one of several fixed income managers that London CIV had lined up a few months ago, as previously reported, but its appointment was only officially confirmed yesterday with the announcement of the new fund.Four London local authority pension funds will invest £308m in the new fund at launch, bringing the London CIV’s total assets under management and oversight above £15bn.Separately, the London CIV announced it had selected Opus Nebula to provide fund factsheet and client reporting services, replacing a legacy reporting system. Brian Lee, chief operating officer at London CIV, said the investor had demanding reporting requirements and implementation timeframes, and that Opus Nebula had enabled the pooling vehicle to automate its client reporting, reduce reporting times and mitigate process risk.“This is an important first step in the build-out of our operating model,” he said.North East Scotland Pension Fund names new custodianNorth East Scotland Pension Fund has appointed HSBC Securities Services as its global custodian.The mandate from the £4.2bn LGPS includes investment accounting, investment reporting, performance services, securities lending and compliance monitoring.BNP Paribas was the pension fund’s most recent previous global custodian, having replaced Bank of New York Mellon in December 2016. Credit: Graham HobsterAberdeen, in north-east ScotlandMember data service providers wantedSeveral UK local authority pension funds are looking to set up a framework agreement for the provision of member data services.They are seeking providers of address tracing and correction, and mortality screening services for the UK and overseas.The participating LGPS are: Norfolk Pension Fund, Bedfordshire Pension Fund, London Borough of Hackney, Lothian Pension Fund, Merseyside Pension Fund, and West Midlands Pension Fund.Any LGPS fund or asset pool is free to choose a provider directly from those that will be appointed to the framework agreement, or run a further competition between them before awarding a mandate.
More than three-quarters (184) of the managers analysed formally commited as responsible investors, but most of these (147) “miss the opportunity to share their approach and actively incorporate it into their brand”, according to the index report.Only 13 companies had a clearly articulated purpose, of which only three “truly connect to a greater societal impact”: Hermes Investment Management, AXA Investment Management and Swedbank Asset Management.“The common unifier for a successful position of both committing to ESG and reflecting this in the brand architecture is to clearly articulate and link an intrinsic, inner guiding purpose, connected to tangible social impact,” according to the index report.Ten companies scored highly on branding but had a low commitment rating, which was interpreted as “their aspiration having not yet been translated into action”. Many European asset managers commit to responsible investment but do not actively incorporate this into how they convey their identity, according to two Swiss brand consultancies.Brand Affairs and H-Ideas – which advise companies on branding and marketing – analysed 239 European investment groups ranked in IPE’s Top 400 Asset Managers to evaluate whether management companies’ “good intent” was also communicated through their brands.The companies collated the data the ‘H&K Responsible Investment Brand Index’.Actual commitment, according to the index, was demonstrated through hard facts, such as committing to the UN-backed Principles for Responsible Investment, and “the intent that transpires from within asset managers through their brand, best visible in openly and transparently communicated vision and purpose statements”. According to the index authors, asset managers should make “finding, articulating and communicating purpose a strategy priority”.Markus Kramer, partner at Brand Affairs, said: “Especially in a world that is becoming increasingly transparent and competitive and where sustainability is on everyone’s lips, a clear definition of one’s own values and vision is the key to a successful responsible investment branding and long-term business success.”Kramer developed the index with Jean-François Hirschel, founder and CEO of H-Ideas.Size no impediment, geography influentialSize did not appear to have a significant bearing on asset managers’ ability to integrate responsible investment into its branding, according to the index. The 47 companies that achieved an above-average score were responsible for €211bn each on average, compared with €202bn for the total peer group average.Geographical location did appear to have a major impact on index rankings, however. There were significantly more French businesses among the 47 best-practice companies than from other countries. Swiss and Benelux asset managers were also well represented, while German companies were strongly under-represented.The index considered the extent to which sustainable development lies at the heart of a company’s identity.
Ole Krogh Pedersen, Danica PensionDifficult financial market conditions last year had been caused by concern about a trade war between the US and China, while negotiations regarding Brexit and Italy’s budget dragged on the euro-zone economy, the firm said.Krogh Petersen said Danica’s overall returns had improved since the introduction of a new investment strategy in 2016, in particular its allocation to alternatives.“These represent a growing part of our investments and, seen in isolation, have produced annual returns in excess of 10% in the past three years,” he said. “Our ambition is to further increase the share of alternative investments in the coming years.”Profits and M&A Denmark’s second-biggest commercial pension provider has reported that some of its pension products lost up to a tenth of their value over the course of 2018.Danica Pension’s pre-tax profits dropped by more than a third last year, which it said was due to the cost of integrating the activities of SEB Pension Denmark and transaction costs arising from the sale of its Swedish business .Costs related to higher insurance claims provisions were also to blame, it said in its full-year results announcement.Ole Krogh Petersen, Danica Pension’s chief executive, said: “After several years of solid positive returns, the challenging market conditions unfortunately not only hit Danica’s performance but also produced negative returns for our customers with unit-linked products.” Returns for customers with the market-rate, or unit-linked, pension product Danica Balance Mix experienced results ranging from a 0.9% profit to a 9.8% loss, depending on risk profile.The savings of those who had opted for medium risk and had 20 years until retirement suffered a 7% loss. Meanwhile, traditional with-profits pensions recorded a 1.7% return in 2018, down from 2.5% the year before.“Although pensions should be viewed from a long-term perspective, it is no secret that 2018 was not a satisfactory year in terms of returns,” Danica Pension said. Source: Finn Årup Nielsen Danica Pension’s office in Lyngby, DenmarkDanica’s profit before tax from continuing operations fell to DKK1.2bn (€161m) in 2018, down 35% from the DKK1.9bn gained in 2017.Danica sold its Swedish activities during 2018, but the deal has yet to be approved by Swedish authorities, meaning the sale price of DKK1.9bn has not yet been booked by the company.Total assets at the end of 2018 were DKK566bn, up from DKK427bn 12 months earlier. Danica Pension closed in on its long-term rival PFA in size terms – PFA’s total assets were DKK582bn at the end of June.However, Danica’s overall assets are set to shrink significantly once the effect of the Swedish sale shows through in its accounts.