Denmark’s fourth-largest pension provider Sampension has added another client after ISP – which caters for technicians and engineers – selected it to provide administration services.
Sampension – which ran DKK325.6bn (€43.6bn) as of 30 June – already administers the Danish industry-wide pension funds for architects and for agricultural academics and veterinarians.
According to a statement from ISP, moving to Sampension would result in a “significant reduction” in costs for its 12,500 members.
Lars Bytoft, chairman of ISP, said: “We have chosen a setup [with] good experience in serving other scientific academic pension funds. I am sure that we will jointly reap a great number of benefits in the form of large savings on administrative costs and an attractive and member-friendly digital platform.”
Sampension replaces AP Pension as ISP’s administrator. ISP will continue as an independent pension fund, it said.
ISP had DKK16.4bn in assets under management at the end of 2018, according to its latest annual report. It posted an investment return of 2.4% after tax for the year.
Sampension, meanwhile, reported returns of up to 13.1% for the first half of 2019 for its investors. Returns ranged from 3.3% to 13.1% depending on age and risk profile, with investors aged 35 in the high-risk bucket experiencing the highest gain.
“This year it is especially listed shares that have paid off across the board, but also our investments in infrastructure and in corporate bonds have delivered solid returns,” said director Hasse Jørgensen. “This benefits our customers in all the companies Sampension manages.”