Danish Investing Giant ATP Exits Six-Year Bet to Target More Risk
ATP, which is Denmark’s biggest pension fund and one of Europe’s top institutional investors, is for the first time in six years looking into putting more of its money into riskier investments.
The board of ATP, which manages 748 billion kroner ($120 billion) in taxpayers’ retirement benefits, will in coming months look into adjusting the fund’s strategy as forecasts show the current setup will result in returns falling by more than half, Chief Executive Officer Christian Hyldahl said in an interview in Copenhagen. Part of that adjustment is designed to keep pace with an aging population.
“Since 2011 we’ve actually had a pretty wide buffer to the risk budget” that the state-backed fund is permitted to take, Hyldahl said. “If we take more risk, there’s a risk of losing a lot of money. On the other hand, if we take too little risk, then we cannot secure purchasing power.”
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