Danish pension fund Industriens Pension made an average return of 3.3 per cent across all age groups in the first half of 2023, its half-year report has shown.

This corresponds to a positive return of DKK 7.1bn in H1, with the pension fund’s total investment assets now amounting to DKK 225bn.

The pension fund stated that, following a “dramatic and unusual” investment year in 2022 where nearly all investors saw negative returns, financial markets had been more positive so far this year.

Members with many years until retirement had received a higher return, while older members’ return was slightly lower, as the investment risk is gradually reduced the closer a member gets to retirement age.

In the first six months of the year, Industriens Pension achieved a return of 9.5 per cent on Danish equities and 9.8 per cent on foreign equities.

Credit bonds yielded a return of 4 per cent over the same period, while gold-randed bonds returned 1.4 per cent.

However, the pension fund’s unlisted assets returned -2 per cent during the first half of the year.

"Both European and American shares have had a good six months, and this reflects, among other things, that the major economies in the West are doing better so far than previously feared,” commented Industriens Pension CEO, Laila Mortensen.

“Having said that, there are still a number of challenges for the stock market in light of the higher interest rates. In any case, we are well equipped with a robust portfolio that has delivered good results in very different market situations."

Over the past 10 years, Industriens Pension had an annual return of 8.2 per cent for members aged 45 and 7.5 per cent for members aged 50.

Share Story: