Denmark’s P+ has delivered its highest return since 2009, with a return of 14 per cent in 2021.

In total, members’ pension savings grew by DKK 17.5bn last year, with the P+ Balance investment portfolio delivering a return of 14 per cent.

Describing the result as “very satisfactory”, P+ investment director, Kåre Hahn Michelsen, said: “2021 was a really good investment year with large increases in the financial markets,”

On that basis, we have achieved a total return of 14 per cent in our investment portfolio. This means that our members' pension savings have increased by as much as DKK 17.5bn in 2021. This is a very satisfactory result.”

In recent years, P + has had an increased focus on risk management, which has made it possible to increase the risk level in the portfolio on several occasions. The provider said that this has made a “decisive contribution” to the return.

During the year, it achieved as much as 21 per cent on its equity portfolio, of which its investments in private equity increased by 42 per cent. It also said its real assets and credit bonds received a “satisfactory return”.

"Overall, our increased risk level has meant that the return was several billion kroner higher than it otherwise would have been, without compromising on the breadth and robustness of the portfolio that will ensure our members long-term returns and financial security as pensioners,” Hahn Michelsen said.

The majority of P+ members have the same risk level in their profile but since November, new members have been enrolled into the P+ Life Cycle, where the risk level is adjusted in line with age and offers flexibility on the risk level.

“Currently, the majority of our members have the same return regardless of age because they have a product with an average interest rate. Although we deliver a really good return to our members overall, we are aware that needs change over the course of a lifetime.

"Therefore, we have launched P + Life Cycle, where you automatically get a higher risk level in your younger years and thus the opportunity to achieve a higher return, while you get a lower risk level when approaching retirement age, where it is important that the value of one savings are preserved,” Michelsen added.

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