Denmark: Unit linked products for pension organisations
Article Abstract:
Compared to Sweden investing in unit linked assurance in Denmark is far behind. Recently Danske Invest had invited the Danish pension organisations to a seminar about the use of unit linked products and the status in Denmark and Sweden. The seminar concluded that for unit linked to become as common as it is in Sweden the Danish pension organisations have to start investing in unit linked products. Teachers' pension organisation (Larernes Pension) said that an inquiry among its members showed that the members are not interested in unit linked while Kommunernes Pensionsforsikring will make it possible for its members to place a third of their pension scheme in unit linked funds. But in general members hesitate because the idea of individual pension savings is opposed to the organisations' idea of a collective pension scheme. Some could end up with a higher pension than others. The reason unit linked assurance is more common in Sweden according to the seminar speakers is that the industrial history goes further back and the Swedes have been used to employee shares. Also, in Sweden investing in unit linked assurance is not restricted to pension savings as it is in Denmark. In Sweden the largest provider of unit linked assurance is Skandialink.
Publication Name: Boersen
Subject: Business, international
ISSN:
Year: 2001
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Denmark: Expected upturn unit linked
Article Abstract:
If the equity market changes in a positive direction, unit linked assurance would be a better deal than the traditional pension schemes. The reason is that the equity market affects unit linked immediately whereas the traditional pension schemes will be affected about 1 year after. Therefore the traditional pension companies are expected to lower the interest rate from the present 8.5-9.5 per cent to 5-6 percent. Whether or not the interest will be lowered depends on the pension provider's bonus reserves. In general Kim Sejer from pension fund management Willis recommends that young people choose unit linked assurance while older people should invest in traditional pension schemes.
Publication Name: Boersen
Subject: Business, international
ISSN:
Year: 2001
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Denmark: Losses in pension funds after September 11
Article Abstract:
The downturn on the stock market, following the terrorist attacks on September 11, have increased losses in pension funds. In SkandiaLink the events have especially affected Schroeders Europe Small Cap and Carnegie shares. Ole Dyhr, chief analyst in SkandiaLink, says that some companies seem to have used the terrorist attacks as an excuse to adjust expectations. These companies ought not to have been affected at all. The interest rate has been lowered very quickly in the U.S., however, new figures for consumption will determine when there may be a positive effect.
Publication Name: Boersen
Subject: Business, international
ISSN:
Year: 2001
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