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by runeks 12 days ago
I wanted to see how well Akademikerpension has done wrt. returns. This graph shows average yearly return from the financial crisis 2009 until 2021 and they are actually the best performing among other Danish pension funds [1].

[1] https://www.finanshus.dk/wp-content/uploads/2023/02/Pensions...

2 comments

Judging a pension fund by how it performs in a bull market seems wrong. Like their main job is to limit your downside from market crashes (if they're not doing that then they offer nothing compared to an index fund), so its strange to not include 2008 crisis (or .com bubble popping).

Checking this shows that the top 2 performers in this graph lost more money (~8%) in 2008 than the bottom 2 (~2%)

You make a good point, but I think “lowest risk” is also not the metric either. You could buy 100% bonds and be even safer.

You want some risk-adjusted return metric parameterized by average returns and also volatility.

Judging a pension by how it performs in 2008 seems wrong. Like their main job is to perform well over long periods of time compared to other funds.

Checking this shows that 12 years is longer than 1 year, and thus is a better metric.

well I agree, my point is that ie 2007-2021 is better than 2009-2021, and with my example I meant to illustrate that the best performers will perform less well and the poor performers perform better if you include 2008, showing that this does in fact matter.
It’s almost like you can each pick data to fit your narrative.
Ah, time to dump Velliv it seems.
Well, often you don't get to "dump" your pension fund. In Denmark, it is your employer deciding what pension fund to use, and you will then have to use it. It is kinda ridiculous.
AFAIK only pension contributions mentioned in a collective bargaining agreement is mandatory. If you get offered a regular contract offering a salary plus 10% pension you can accept the job, write an email to HR stating that you opt out and get the extra 10% as take home pay. You can the make voluntary pension contributions to whatever pension fund you have a private agreement with. And all the private pension companies are very happy to make such an agreement, though the terms will be worse than an employer plan from the same company. Or you could do a completely self-administered one, e.g. through Nordnet.