A Sampension customer with 15 years until retirement and invested with moderate risk received a return of -7.9 per cent in 2022, the Danish pension company has revealed.

Overall, the total return for Sampension customers was between -6.1 per cent and -9.4 per cent, depending on their age and investment profile.

Sampension described the investment environment in 2022 as having “high winds, heavy rain and changing temperatures”, as stock and bond prices fell, interest rates rose, inflation spiked and the war in Ukraine sparked an energy crisis in Europe.

"Already at the beginning of the year, we saw the first serious signs that 2022 would be a difficult investment year,” commented Sampension deputy investment director, Jesper Nørgaard.

“We have – like all other investors – suffered losses on both shares and bonds. This also means that both customers with many shares and customers with many bonds will be affected.

“A negative return is always difficult, but when we look at the stormy weather that has been in the financial markets, we are satisfied with the return."

According to a comparison made by independent investment adviser, Nikolaj Holdt Mikkelsen, Sampension was among the best in the industry at limiting investment losses.

Losses were negated by alternative investments, such as forests, properties and renewable energy, according to Sampension.

The pension company added that it was important to remember pensions are a long-term saving vehicle, with a customer with 15 years to retirement and invested with moderate risk having returns of 30.9 per cent over the past five years.

“During the perhaps 30-40 years in which you pay into a pension, there will be both lean and fat years,” Nørgaard explained.

“2022 was in every way an unusual year, and although we believe that 2023 will be less dramatic, one must prepare for the return in the coming years to be lower than what we have seen in the past 10 years.

“However, we still have faith in our investment strategy and are doing our very best to invest wisely and ensure the best possible returns in the difficult markets."

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