Danish pension provider P+ has revealed strong investment returns in 2025, with double-digit performance delivered across its pension schemes for the third consecutive year despite heightened geopolitical uncertainty.

The investment year resulted in returns of 12 per cent for members in P+ Livscyklus and 10.2 per cent for those in P+ Bæredygtig, based on medium-risk profiles with 15 years to retirement.

Members in the average interest rate scheme, P+ Balance, achieved returns of 8.7 per cent.

P+, investment director, Jasper Riis, said the results reflected a resilient year for global markets.

“Despite great geopolitical uncertainty, 2025 ended as a strong year in the financial markets.

"In P+, we were able to record positive returns in ten out of the 12 months of the year, and overall, 2025 has been another good investment year,” he added.

The results for P+ Livscyklus and P+ Bæredygtig place the two market-rate schemes second and third, respectively, in an industry comparison of three-year returns among 19 life-cycle products with medium risk and 15 years to retirement, according to independent investment expert Nikolaj Holdt Mikkelsen.

Riis said the performance underlined P+’s focus on long-term outcomes for members, noting that the pension fund’s newer savings products had delivered competitive returns not only in 2025 but over a multi-year period.

He added that returns across P+ schemes in recent years have been significantly above long-term expectations, particularly for medium- and high-risk investment profiles.

Market volatility early in the year briefly weighed on returns, following US trade policy announcements in the spring that led to a negative return of just over -8 per cent at the beginning of April.

However, markets recovered within a month, a development Riis claimed was symptomatic of the market’s ability to absorb geopolitical shocks.

He attributed the recovery to relatively strong global economic growth, subdued inflation and subsequent monetary policy easing, all of which supported asset prices.

Riis also stressed the importance of sticking to P+’s long-term investment strategy during periods of turbulence, highlighting the role of diversification in maintaining risk exposure through market fluctuations.

Indeed, P+'s returns in 2025 were primarily driven by listed equities, although performance was broadly positive across all asset classes, including hedge funds and illiquid assets such as real estate and infrastructure.

Riis noted that the breadth of returns was unusual and reflected the combination of economic growth and easing monetary conditions.

Emerging markets also delivered strong performance during the year, supported by favourable growth conditions, inflation under control and increased interest from global investors.

Riis argued that geopolitical developments were encouraging greater diversification across regions and asset classes, although US equities remained a key component of global portfolios.

He added that P+ continues to focus on managing currency risk, particularly given the recent weakening of the dollar.

Looking ahead, the investment director said expectations for 2026 remain broadly positive despite continued geopolitical unrest.

Riis concluded that a strong growth outlook should support returns, although ongoing geopolitical risks could affect growth and inflation over the longer term.

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