The typical customer at Denmark’s largest pension company, PFA, saw the best May in eight years, with growth of 2.4 per cent, the company has reported.

According to PFA's update, a dip in the markets in April was followed by a brightening in performance in May, and the strong upward swing means that savings have grown by around 8 per cent since the start of 2024 for the typical saver.

PFA chief strategist, Tine Choi Danielsen, said: "We have maintained a positive view of the markets despite the decline in April. This has benefited our customers, who have benefited from the equity comeback in May.

"For a typical customer, the return was lifted by another 2.4 per cent and is now around 8 percent for the year. This is a great improvement, and we can look forward to the strongest May for returns in eight years.”

PFA said the strong returns were thanks to near-record prices in US and European markets, and that Danish stocks – in which PFA is overweight relative to country and market size – had performed particularly well.

PFA said Danish shares had produced a return of just over 21 percent year to date – higher than both the European STOXX Europe 600 Index (8.2 per cent) and the US S&P500 Index (10.6 per cent).

"At the moment, it seems that both Europe and the US have reached a balance where we can enjoy robust growth, but without inflating too much. As long as this trend continues, we believe there is potential for further equity returns for the rest of the year,” added Choi Danielsen.

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