Denmark's P+ reported that 2024 was a 'good' investment year, resulting in high returns for members, crediting market developments throughout the year for the high returns.

The update stated that members in P+ Life Cycle and P+ Sustainable with medium risk and 15 years to retirement ended with a return of 12.6 per cent and 12.4 per cent, respectively.

Meanwhile, the return for members with an average interest rate scheme was 9.4 per cent.

Commenting on the positive returns, P+ chief investment officer, Jasper Riis, said: “Although 2024 was marked by a number of political and geopolitical events, the markets were relatively unaffected throughout the year.

“Despite a number of fluctuations, we recorded positive returns in nine out of the 12 months of the year, and overall 2024 was a good investment year."

According to the update, in 2024 the development in the financial markets was mainly driven by listed equities, which delivered “exceptionally” high returns, as they did in 2023.

The listed equities in the portfolio delivered a return of 14.8 per cent, mainly due to large US technology companies, but other asset classes also contributed positively to the return.

Riis explained that P+ has an investment strategy for equities about being exposed to US equities and he said this “paid off” in 2024, with equities delivering a return that was far higher than expected over a longer time.

He added that it was also positive that several of its asset classes contributed to the year's result, such as a return of around 15 per cent in P+’s hedge funds and its composition of Danish stocks resulted in a return of over 9 per cent.

However, the unlisted and illiquid asset classes, including real estate, infrastructure, and private equity, did not perform strongly in 2024. It said that the same asset classes have done so historically, showing the value of P+’s portfolio.

“When we maintain a relatively high level of risk, it is a strength to have a broad and well-diversified portfolio, as it gives us the best results in the long term,” Riis said.

The savings products, P+ Livscyklus and P+ Bæredygtig were well above average in the industry in 2024.

In 2023, the products took both first and second place in a comparison of lifecycle products with medium risk and 15 years to retirement. Over the last two years, they secured two of the top three spots, demonstrating strong returns despite being relatively new.

Riis said he was “pleased” that in the future it will be possible to assess the longer-term results of P+'s investments.

"The annual returns of course contribute to our results over time. But as a pension fund, we must first and foremost be measured by what we achieve in the long term,” he continued.

“That is our main focus, and it will also be so in the coming year when we expect another positive return - although perhaps more moderate than in the previous two years.”

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