Denmark’s Biggest Pension Fund Just Unveiled a Record 40% Return
Denmark’s biggest pension fund, ATP, more than doubled its rate of return in the first nine months of this year as most of the asset classes it invested in grew in value.
Read also European private pension industry hit by negative returns in 2018
The upshot was a return of 36.9 billion kroner ($5.5 billion), before costs and taxes, said ATP, which oversees about $130 billion of assets from its headquarters north of Copenhagen.
Read also SA retirement funds are ahead of the pack with ESG investing
That’s equal to a rate of return of 40%, and compares with a realized average return of 17.6%, it said in a statement on Thursday. But Chief Executive Officer Bo Foged warned that ATP is unlikely to be able to sustain such levels.
Read also Nigeria: AfDB Advocates Unlocking of U.S.$1.8 Trillion AUM for Investment
“We will continue our disciplined approach to portfolio construction and risk management to safeguard the basic financial security for members in the longer term, particularly as we anticipate lower investment returns in future years and greater fluctuations,” he said.
The primary contributors to ATP’s record returns were government and mortgage bonds, along with Danish and foreign listed equities. The fund’s free reserves totaled 124 billion kroner.
Read more @Bloomberg
