Public HTML RI reports - PRI reporting framework 2020

Select the services and funds you offer	% of asset under management (AUM) in ranges
Fund management	0% <10% 10-50% >50%
Fund of funds, manager of managers, sub-advised products	0% <10% 10-50% >50%
Other	0% <10% 10-50% >50%
Total 100%

Further options (may be selected in addition to the above)

Hedge funds

Fund of hedge funds

01.2. Additional information. [Optional]

Nykredit Realkredit Group provides a wide range of financial services from investment management, banking to mortgage finance. A third of funds managed are part of our own funds in treasury and the other two thirds is managed on behalf of customers.

OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

Denmark

02.2. Indicate the number of countries in which you have offices (including your headquarters).

2-5

6-10

>10

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

3243 FTE

02.4. Additional information. [Optional]

The Nykredit business is described more in detail on these web-pages:

www.nykredit.com

https://www.nykredit.com/siteassets/ir/files/corporate-responsibility/csr-reports/corporate_responsibility_report_q4_18_2019-02-05_en.pdf

OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

Yes

03.2. List your subsidiaries that are separate PRI signatories and indicate if you would like to report their RI activities in your organisation’s consolidated report.

Name of PRI signatory subsidiary (Up to six subsidiaries may be reported)	RI implementation reported here on a consolidated basis
Sparinvest S.A.	Yes No
	Yes No
	Yes No
	Yes No
	Yes No
	Yes No

03.3. Additional information. [Optional]

In september 2019 Nykredit bought 75% of the shares in Sparinvest. Sparinvest was, at the end of the year a subsidiary to Nykredit. Both companies have been signatories to the UNPRI since 2009. Both companies have very similar approaches to responsible investments, but still had at the end of the year separate policies. As this UNPRI report represents the activities of Nykredit during the entire 2019 guided by its policies, this report treatsNykredit as a seperate entity. For the reporting year of 2019 the Nykredit report will only cover investments and activities under the Nykredit-group as it was prior to the acquisition of Sparinvest. The same principle is used for the Sparinvest reporting. For the next report covering activities in 2020 the Nykredit report will cover investments and activities in both companies.

OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2019

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

Not applicable as we are in the fund-raising process

04.3. Indicate the total AUM of subsidiaries you have excluded from your report (as named in OO 03.2 under “No”). Provide this figure based on the end of your reporting year

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

04.4. Indicate the assets which are subject to an execution and/or advisory approach. Provide this figure based on the end of your reporting year

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

Not applicable as we do not have any assets under execution and/or advisory approach

04.5. Additional information. [Optional]

A third of funds managed are part of our own funds in treasury and the other two thirds is managed on behalf of customers. These are mainly invested in UCITS and FAIF mutal funds.

OO 06. How would you like to disclose your asset class mix

06.1. Select how you would like to disclose your asset class mix.

as percentage breakdown

	Internally managed (%)	Externally managed (%)
Listed equity	10-50% 15.7	<10% 4.1
Fixed income	>50% 72.7	<10% 2.2
Private equity	<10% 0.7	<10% 0.5
Property	0 0	0 0
Infrastructure	0 0	<10% 1.5
Commodities	0 0	0 0
Hedge funds	<10% 2.6	0 0
Fund of hedge funds	0 0	0 0
Forestry	0 0	0 0
Farmland	0 0	0 0
Inclusive finance	0 0	0 0
Cash	0 0	0 0
Money market instruments	0 0	0 0
Other (1), specify	0 0	0 0
Other (2), specify	0 0	0 0

as broad ranges

06.2. Publish asset class mix as per attached image [Optional].

Asset Class Mix of Nykredit 2019.pdf [6KB]

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

Yes

06.5. Indicate whether your organisation uses fiduciary managers.

Yes, we use a fiduciary manager and our response to OO 5.1 is reflective of their management of our assets.

No, we do not use fiduciary managers.

06.6. Provide contextual information on your AUM asset class split. [Optional]

The AUM of the Nykredit is two third investments of client funds in mainly UCITS and FAIF funds and one third treasury investments of own capital.

OO 07. Fixed income AUM breakdown

07.1. Provide to the nearest 5% the percentage breakdown of your Fixed Income AUM at the end of your reporting year, using the following categories.

Internally managed	18 SSA 3.1 Corporate (financial) 4.2 Corporate (non-financial) 74.7 Securitised Total 100%
Externally managed	83 SSA 3 Corporate (financial) 14 Corporate (non-financial) 0 Securitised Total 100%

OO 08. Segregated mandates or pooled funds

New selection options have been added to this indicator. Please review your prefilled responses carefully.

Provide a breakdown of your organisation’s externally managed assets between segregated mandates and pooled funds or investments.

Asset class breakdown	Segregated mandate(s)	Pooled fund(s) or pooled investment(s)	Total of the asset class (each row adds up to 100%)
[a] Listed equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[b] Fixed income - SSA	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[c] Fixed income – Corporate (financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[d] Fixed income – Corporate (non-financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[f] Private equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[h] Infrastructure	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%

08.2. Additional information. [Optional]

All externally managed Nykredit funds, be it segregated or pooled, need to be compliant with the Nykredit investment policy. ESG is part of the selection process as well as the ongoing due diligence of managers processes and investments.

OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

96.6 Developed Markets

3.4 Emerging Markets

0 Frontier Markets

0 Other Markets

Total 100% 100%

09.2. Additional information. [Optional]

The breakdown is based issuer country and not revenue. Most global companies with significant activities in Emerging Markets have their issuance registered in the US or Europe. Nykredit is very aware of this and considers its exposure on equities alone more in line with the global economic activities, eventhough Nykredit has sizeable funds dedicated to Danish Equities. Nykredit also has a dedicated EM Equities fund as well as a EMD.

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