Denmark’s PFA has generated a return of 9.3 per cent for a ‘typical customer’ in the first half of 2024.

A ‘typical customer’ in PFA's recommended profile has medium risk and 15 years to retirement. PFA said this result is at the top among commercial pension companies and a higher return than the average return over a year.

"One of PFA's most important tasks is to create financial security for our customers through good long-term returns. I am therefore very pleased that we have again in 2024 dosed our equity risk well and taken advantage of the tailwind that has been on the financial markets,” PFA investment director, Kasper A. Lorenzen, said.

“This means that a typical customer in our recommended profile can enjoy a half-year return of 9.3 percent. This is a higher return than the average return over a full year, and it comes on the back of a 2023 where we delivered a return of 12.1 percent in the same profile.”

He noted that PFA has continued its strong performance of recent years, and both in the current year and over a three-year period is at the top among commercial pension companies. He is also pleased that PFA's climate-focused product, PFA Climate Plus, has once again gained momentum and delivered a half-year return of 9.4 per cent in Profile C. This is on par with the return in the traditional PFA Plus product and is right at the top when looking at comparable products with an increased focus on sustainability.

Despite a good six months, he does not rule out the possibility of building further returns in the second half of 2024.

"The global economy is generally in good shape, and central banks have been skilled at managing interest rates so that they can support continued growth and employment, but without reviving inflation. Even though the large price increases in the first half of the year have, all else being equal, reduced the return potential of equities, there may still be more to come," Lorenzen added.

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