Asset allocation - from 40 years to the short term

         

 

The Fund's asset allocation, in other words the proportion of equities in relation to fixed income assets and other asset classes such as real estate, is estimated to produce 80%–90% of total return in the long run. The Fund invests significant resources in creating optimal asset allocation.

The investment horizon for pension capital is very long; the Fund makes analyses of up to 40 years.

To optimise asset allocation over different investment horizons, the analysis is broken down into a number of different ones. This annual report describes three investment horizons. Different investment horizons enable the Fund to better capitalise on the opportunities and manage the limitations inherent in long-term (40 years), medium-term (3–5 years) and short-term analyses. For each investment horizon, the Fund determines an optimal asset portfolio.