Danish pension provider PFA has bounced back from the worst of the recent trade policy turmoil to record solid returns, as strong performances from both US and European equities boosted gains.

An update from the provider revealed that a typical PFA customer with a medium-risk profile, 15 years until retirement, and DKK 1m in their pension account has seen an April loss of DKK 92,000 turn into a gain of DKK 46,000 by the start of September, provided they maintained their investment profile.

“The past eight months have once again shown that developments can move quickly in the stock markets, and that it usually pays to remain calm when stock prices plunge,” PFA chief strategist, Tine Choi Danielsen, commented.

The rebound was mainly driven by the recovery in US stock markets, which were initially hit hard by tariff threats from US President, Donald Trump, in April.

While US equities reached new highs, Danielsen noted that currency movements dampened gains for Danish investors.

Therefore, PFA increased its protection against dollar declines during the period, helping to offset the impact.

European stocks also contributed strongly to the recovery, delivering returns of 10.5 per cent, although the Danish C25 index fell nearly 7 per cent over the same period.

“There is no wormwood in the cup when we look at the European stocks, which have contributed well to savings,” Danielsen noted.

Looking ahead, Danielsen said she was largely optimistic about the outlook for the remainder of 2025, pointing to continued strength in Japan, Europe and the US.

“It seems as if the worst unrest about trade policy has subsided,” she added, while warning that delayed effects, such as inflation and weaker employment, could still influence central bank decisions.

Despite recent volatility, PFA stressed that results are supported by longer-term performance, with three-year gains for a typical customer currently around 30 per cent.

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