About the Council
The Council for Return Expectations is tasked with setting the common return expectations used by pension companies and financial institutions when calculating pension projections and return expectations for their customers. The council sets the underlying assumptions of calculations for expected returns and the risk of various investment assets. The expectations are set twice a year.
The Council is appointed by Insurance & Pension Denmark and Finance Denmark
The Council for Return Expectations is appointed by Insurance & Pension Denmark and Finance Denmark. Insurance & Pension Denmark is a business association for pension companies in Denmark. Finance Denmark is a business association for banks, mortgage insitutions, asset management, securities trading, and investment funds in Denmark.
The council has been appointed for ensuring realistic pension projections and return expectations for the Danes. The expectations for return and inflation are set by independent experts and all pension providers must use the same assumptions when calculating projections and return expectations for customers.
The Council consists of three independent experts who are appointed for a period of three years at a time. The Council was established in 2018.
The council is provided council service by Insurance & Pension Denmark and Finance Denmark.
Short, medium, and long term
The council determines the return assumptions for 10 asset classes in the short term (years 1-5) and medium term (years 6-10) based on input from expert sources. The assumptions are set based on input from
In addition, a contribution from Robeco has been received, which has been used in connection with the quality assurance of the other financial houses' contributions:
The input from expert sources is to the extent possible delivered in accordance with the Council’s specifications.
The input from expert sources is confidential. Accordingly, the Council’s is not in a position to answer questions or engage in discussions on issues relating to input from expert sources.
From time to time, the Council’s hosts a conference for the attendance of users of the common return assumptions, where expert sources are invited to present and expand on their analytical methods and assumptions.
The Council sets long-term assumptions for equity and bonds on the basis of the relevant research literature within the field.
Members of the Council
Chairman
Jesper Rangvid, professor at CBS and head of the Pension Research Centre (PeRCent). Chairman of the committee that investigated the causes of the financial crisis and wrote the report referred to as the “Rangvid-report”.
Torben M. Andersen, professor at Aarhus University, chairman of ATP's council of directors and former president of the Danish Economic Councils.
Peter Engberg Jensen, chairman of the council of directors for Finansiel Stabilitet and former group CEO at Nykredit.