Investment Strategy Evolution: More Shares, Longer Horizon
PFA is set to evolve its investment profiles, effective April 1, 2025. The new profiles, which will replace the current four in both PFA Plus and PFA Climate Plus, will increase the proportion of shares, particularly in the earlier years of a customer’s savings journey. While maintaining a life-cycle approach where the share of equities decreases as retirement approaches, the new profiles will generally contain more shares and reduce this proportion over a longer period. This strategic shift is intended to increase customers’ expected returns and payouts without compromising security and stability in retirement. (Source: PFA Holding Annual Report 2024, page 12)
Climate Plus Product Enhancement: Scope 3 Emissions and Carbon Neutrality
Effective April 1, 2025, PFA Climate Plus will implement stricter investment requirements to include Scope 3 emissions. This change aims to enhance the product’s transparency and climate focus by incorporating indirect emissions from PFA’s investments. The goal is to achieve carbon neutrality for PFA Climate Plus products by 2025 and become carbon negative by 2030. This will involve not only excluding oil, coal, and gas companies but also those heavily dependent on these sectors. The increased data-driven framework may lead to a smaller diversification in the investment portfolio and potentially slightly lower expected returns compared to PFA Plus. (Source: PFA Holding Annual Report 2024, page 12, 68)
Strategic Investment in Sustainable Forestry: Neutralizing Climate Plus Emissions
In 2024, PFA expanded its PFA Climate Plus portfolio with additional investments in sustainable forestry, now totaling approximately 28,000 hectares in the USA. This initiative is expected to deliver stable annual returns and contribute to the ambition of achieving CO₂e neutrality for PFA Climate Plus products by 2025. The negative CO₂e emissions (emissions absorbed and stored in wood) from these investments amounted to approximately -200,345 tonnes in 2024. This data will undergo independent third-party verification in the first half of 2025. (Source: PFA Holding Annual Report 2024, page 12, 65, 69)
Merger of PFA Asset Management into PFA Pension: Streamlining Operations
PFA Asset Management is expected to merge into PFA Pension, forsikringsaktieselskab, with accounting effect as of January 1, 2025. This decision is anticipated to be finalized at the Annual General Meeting of Shareholders in March 2025, aiming to simplify and optimize the Group structure. (Source: PFA Holding Annual Report 2024, page 29, 182)
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