Our commercial investment activities are based on a strategic framework that has evolved over time. Increasingly, the focus has been on diversification—across geographies as well as asset classes—to ensure a robust and resilient portfolio.
In the long term, our strategic objective is to achieve returns comparable to global equities, but with lower market risk. The investment strategy reflects our ambition to remain relevant for both current and future generations, balanced against the level of market risk we are willing to assume.
The strategy also includes specific targets for the development of our equity. Financial markets fluctuate, and to ensure that actual performance remains as close as possible to these targets, we apply a range of models and methods to manage the development of our equity.
Based on the investment strategy, we analyse expected long-term returns. The money we spend supporting projects large and small in the built environment derives from returns on our investments.
Money for philanthropy
If we are to continue our philanthropic work to enhance the quality of life and set the agenda for solutions to the challenges facing towns, buildings and the built heritage, we must optimize the return of our investment assets.
The Investment Strategy 2020-2026 is the fourth strategy for our non-philanthropic investment assets, and it entered into force on 1 January 2020.
Our investment team is responsible for day-to-day investment activities and cooperation with our external capital managers. The team is made up of experienced portfolio managers and analysts, and our investment activities are monitored by a separate risk team that reports about activities to the executive management board and the board of directors.
Where does the money come from?
Realdania’s capital is accrued during the 150-year history of Danish mortgage banking. Realdania was established in 2000 when the Realkredit Danmark mortgage institute sold its mortgage-credit activities to Danske Bank. The equity could not be paid back to the members. Therefore, Realdania was set up to support non-profit-making projects within the built environment, and through this ensure that future generations also benefit from the funds.