Danish pension company Velliv returned between 5 per cent and 7.4 per cent in H1 2023 for a customer with 15 years to retirement and medium risk, depending on their retirement product.

This corresponds to a total customer return of DKK 11.3bn.

Its return on equity investments improved from 4.4 per cent in the first half of 2022 to 18.2 per cent in the first six months of 2023.

Velliv said that it expected that the higher level of interest rates will increase the long-term return on bond-like investments.

Meanwhile, in the equity market, the pension company expected more volatility and, overall, a lower return than was experienced in the 2010s.

“Velliv continuously assesses market conditions and the need to adapt the company's savings products to the new trends in the investment markets,” it added.

Overall, Velliv's pension payments increased by 3 per cent in H1 2023 and amounted to DKK 17.5bn.

The pension company’s profit before tax increased from DKK 160m in the first half of 2022 to DKK 712m in the first six months of 2023.

"I may not be quite as positive as those who point to a plus for the rest of 2023,” commented Velliv investment director, Anders Stensbøl.

“All in all, the stock market is priced on the expensive side right now. Therefore, we expect that the stock market may lose its breath and produce some losses from the current level.

“However, the market has already been good this year, and therefore we also expect positive returns when we look at the whole year.”

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