On 27th May 2020, the Financial Supervisory Authority announced that it will initiate an investigation into the pension companies’ ongoing valuation of alternative investments. This investigation is due to the large fluctuations in the financial markets in 2020 as a result of COVID-19.
The pension companies must explain the development in the valuation of their alternative investments within four asset classes: private equity, infrastructure, illiquid credit investments and properties. In this connection, the companies must, inter alia, state what market data they have used for value development and how they have taken into account changes in the risk picture in connection with COVID-19.
In addition, the companies must explain in more detail the value development in their largest individual investments within and above. private equity and illiquid credit.