Annual report 2017
In 2017, DIP achieved a very satisfactory return of 9.4 pct. before tax.
We manage assets of more than DKK 40 billion, and the joint administration with the Lawyers’ and Economists’ Pension Fund, JØP, rank the pension fund among the ten biggest pension companies. DIP and JØP manage assets of DKK 120 billion.
In 2017, the membership rose to 27,716 members. This is among other things due to the pension fund’s strategy to admit privately employed members. The constant membership increase allows for the pension fund to invest long-term which both new and retired members benefit from.
In 2017, the Board focused on how to generate good returns in future. In 2017, the age-long low interest rate hit a new low, and the solid number of high equity returns since the financial crisis is not everlasting.
The investment strategy must be able to handle this, and consequently we have decided a risk-based investment strategy which is implemented in 2018.
We pursue an active ownership strategy and on our web, the members can see how we vote on companies’ annual general meetings, as well as the dialogues we have with companies. We believe in dialogue, but if this proves aimless, we sell the equities. This was the consequence in 2017, when we sold off our investments in Walmart and Heidelberg Cement.
Based on the pension fund’s business model, we aim at securing our members the best possible pension cover – that is the best possible savings for retirement and safety in the working life. Accordingly, it was a pleasure for us to introduce an improved group insurance at the beginning of 2018.
The year’s result
The total income accounted for DKK 4,387 million in 2017. The income includes an investment return of DKK 3,453 million as well as member contributions of DKK 934 million. The total expenses accounted for DKK 3,615 million. Of this pension payments accounted for DKK 1,414 million which is an increase of 3.4 percent compared to 2016.
The year’s costs
DIP’s costs are still on a satisfactory low level. In 2017, the members paid an average of 0.94 percent of their savings in costs. In 2017, the administrative costs fell to DKK 634 per member against DKK 678 in 2016. The falling administrative costs are due to continued efficiency improvements in the administration as well as an increasing number of members.