- The European Insurance and Occupational Pensions Authority (EIOPA) has published its first shocked risk-free interest rate term structures (RFR).

These term structures are used to calculate the ‘option-adjusted’ duration of technical provisions to be reported in the context of the Guidelines for reporting for financial stability purposes (S.38.01.11 - Duration of technical provisions). The shocked RFR aims to ensure consistent calculation of the ‘option-adjusted” duration. EIOPA will update the term structures and publish them twice a year on its website. The next update is coming in July 2024.

- Industriens Pension has sold an office building in Greater Copenhagen to Niam for DKK 130m, in an effort to sharpen its real estate strategy.

The 7,300 sqm office property, which the pension fund bought in 2017, was originally built as the Danish headquarters for Canon and housed the company until 2022, after which Novo Nordisk moved in as tenant.

"The office property has been a good acquaintance for our real estate portfolio, and it has contributed positively to members' pension savings in the form of a solid return during the period. However, it falls slightly outside our forward-looking strategy for office properties, where the focus is very much on centrally located office properties in Copenhagen and Aarhus, respectively," Industriens Pension head of real estate, Søren Tang Kristensen, said.

- Norway’s KLP had a strong year in 2023 and, as a result, will transfer NOK 21.4bn to customers’ premium funds.

The return for pension funds in the collective portfolio was 2.4 per cent in the fourth quarter of 2023 and 6.4 per cent for the year. KLP CEO, Sverre Thornes, said: “A good return is the most important contributor to lower pension costs, and therefore it is extra nice to be able to transfer such a large profit to our customers.”

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