PJD’s returns were among the market’s best in challenging 2022

22 March 2023

Pensionskassen for Jordbrugsakademikere & Dyrlæger (PJD) delivered some of the industry’s best returns in 2022, with C02 emissions from investments falling once again.

PJD’s investment return was among the best in the market last year, but was naturally affected by the headwinds in the financial markets.

In 2022, the overall return across the investment environments was -7.8 per cent. PJD’s members on market interest with 15 years until retirement and moderate risk got a return of -6.4 per cent. in 2022, while the return for a member with 5 years until retirement was -5.7 per cent. In average interest, the return was -8.1 per cent. in 2022.

“2022 offered severe unrest on the financial markets, where we quite unusually witnessed losses on both shares and bonds as a result of not least the war in Ukraine, the energy crisis, rising interest rates and sky-high inflation. At the same time, the financial headwinds meant that Danes generally got negative returns on their pension savings last year, which also applied to the members of the PJD. And of course it’s never fun to experience,” says Mads Smith Hansen, CEO of PJD, and continues:

“Having said that, it is satisfactory that in 2022 PJD was among the pension companies that were best at limiting losses for members, just as the pension fund created the industry’s highest return in market interest the year before. This shows that our investment strategy is robust in both boom and bust times, which helps to ensure good returns for members over time,” says Mads Smith Hansen.

Over the past five years, average rate schemes have had a total return of 12 per cent.

In 2022, PJD once again lowered CO2 emissions from the investment portfolio, which has fallen significantly over the last three years. For the listed shares and directly owned credit bonds alone, the climate footprint has now been reduced by a total of 42 per cent. since 2020.

“We are working purposefully to continuously lower CO2 emissions from the investment portfolio. Because it is both beneficial for the climate and at the same time, in our opinion, the way to ensure the best possible long-term returns for the members. We are therefore very satisfied that in 2022 we have also significantly lowered the CO2 emissions from the investments, which was not least achieved by entering into a dialogue with the companies about climate improvements together with other investors,” says Mads Smith Hansen.
PJD’s goal is that CO2 emissions from the total investment portfolio must be reduced by 45 per cent. in 2030 compared to 2020, which should contribute to the investment portfolio being CO2-neutral in 2050.

In 2022, it has also been possible for the first time for PJD to calculate the CO2 emissions from virtually the entire investment portfolio (more than 90 per cent of the total net investment assets). The total emission for 2022 is 65,082 tonnes of CO2e, while the climate footprint (carbon footprint per DKK million invested) incl. forest investments, which absorb CO2, are 5.83.

In order to support the climate targets for 2030 and 2050, PJD prepares sub-targets for both the total investment portfolio and for the various sectors invested in. In 2022, annual sub-targets have been drawn up for the sectors supply, energy, materials and industry for the period 2020-2050, and will be set during 2023 sub-goals for the remaining sectors.

Source: PJD Pension
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