New risk profiles in P+ Sustainable

27 May 2024

P+ publishes on its website:

P+ meets member requests and is now launching high and low risk in the savings product P+ Sustainable, which has an extra strong focus on sustainability.

Just over two years ago, P+ launched as the first occupational pension fund an investment profile in market interest with an extra strong focus on sustainability. It is called P+ Sustainable, and has been very well received by the members. Last year, the total savings in P+ Bæredygtig multiplied, and every 10th of the members who decide on their investment profile choose P+ Bæredygtig today.

P+ Sustainable was initially launched with a single risk profile that corresponds to medium risk in the standard product, P+ Life Cycle, but several members have expressed that they would like to be able to choose from several risk profiles within P+ Sustainable. Therefore, P+ Bæredygtig is now also being launched with both high and low risk in addition to the current risk profile.

“2023 was a very good year for both P+ Sustainable and our standard product P+ Life Cycle, which with 18 per cent respectively 16.9 per cent delivered the highest and second highest returns of all market rate products in the entire pension industry. We are the occupational pension company that offers our members the greatest flexibility, and we are now increasing this with two more risk profiles in P+ Sustainable. By offering several options, we make it even easier for members to choose an investment profile that suits their particular wishes. Both in relation to risk level and focus on sustainability,” explains Kåre Hahn Michelsen, CEO of P+.

More focused portfolio

With P+ Sustainable, you get, among other things, an even greater focus on human and labor rights, environment, biodiversity, climate, responsible tax and management conditions. P+ Sustainable differs primarily from P+ Livscyklus in relation to listed shares, commercial and government bonds. Where P+ Life Cycle contains approx. 2,500 listed shares, contains P+ Sustainable approx. 450 shares.

“The investment universe is smaller in P+ Bæredygtig, because we sort out more companies and are less patient with our active ownership,” says Kåre Hahn Michelsen.

In 2023, a significant part of the investments in the two products were the same, this applies, for example, to the investments in infrastructure, properties and non-listed shares.

“We have chosen to design P+ Sustainable in this way, because it means that you get an extra high focus on sustainability at the same time that you get a sufficiently large risk spread so that you can invest your entire pension savings in P+ with peace of mind Sustainable. However, we are working to ensure that P+ Bæredygtig eventually gets an independent portfolio of the so-called alternative investments,” says Kåre Hahn Michelsen.

Overall, P+ expects that both risk, costs and returns in P+ Sustainable over a long horizon will be on a par with P+ Lifecycle. However, the increased focus on sustainability means that different fluctuations can occur in the returns in P+ Sustainable.

Source: P+
Multiple reports with cicle diagram and text

About Exelerating

The Exelerating platform helps you to gain relevant insights into € 6,000+ billion of European institutional assets. We do this by tracking and analysing thousands of public sources of data.

Learn more