Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 16.12.2003
Length: 24 pages
Data source: Field research
Abstract
This is the first of a three-case series (IMD-3-1130 to IMD-3-1132). This case focuses on the history of the ATP (Arbejdsmarkedets Tillaegs Pension of Danish Labor Market Supplementary Pension) complementary pension fund system in Denmark, its genesis and current stage of development. As a relatively young pension fund system, it is still facing relatively large contributions relative to the amounts it has to pay out to its pensioners. But the projections, both in terms of demographics and portfolio returns, indicate that the situation is rapidly going to change, and ATP had better get ready for these large outlays in the future. The case describes the strategic review process entered into by ATP in January 2002, which led to the decision to significantly increase the portfolio allocations towards private equity and alternative investments vehicles, a radical move for a European pension fund manager which will transform ATP Private Equity Partners into the largest single private equity investor in Europe for the period 2002-2005 as it shifts its portfolio towards its target allocations.
Location:
Industry:
Size:
EUR40 billion under management
Other setting(s):
2002
About
Abstract
This is the first of a three-case series (IMD-3-1130 to IMD-3-1132). This case focuses on the history of the ATP (Arbejdsmarkedets Tillaegs Pension of Danish Labor Market Supplementary Pension) complementary pension fund system in Denmark, its genesis and current stage of development. As a relatively young pension fund system, it is still facing relatively large contributions relative to the amounts it has to pay out to its pensioners. But the projections, both in terms of demographics and portfolio returns, indicate that the situation is rapidly going to change, and ATP had better get ready for these large outlays in the future. The case describes the strategic review process entered into by ATP in January 2002, which led to the decision to significantly increase the portfolio allocations towards private equity and alternative investments vehicles, a radical move for a European pension fund manager which will transform ATP Private Equity Partners into the largest single private equity investor in Europe for the period 2002-2005 as it shifts its portfolio towards its target allocations.
Settings
Location:
Industry:
Size:
EUR40 billion under management
Other setting(s):
2002