Denmark's PensionDanmark delivered a record investment return of DKK 36.5bn in 2021, with these returns expected to help strengthen members' pensions amid the volatile financial markets and geopolitical tensions prompted by Russia’s invasion of Ukraine.

The company’s annual report confirmed that younger members received a return of 16 per cent in 2021, whilst those approaching retirement received a return of 10.3 per cent.

At the end of February, however, the return for 2022 to date was negative at 4.7 per cent for younger members and negative 2.5 per cent for members approaching retirement.

Despite this, and falling equity prices seen in the first two months of 2022, returns on members’ savings have remained positive relative to the beginning of 2021 thanks to the “strong" 2021 results,

Commenting on the results, PensionDanmark CEO, Torben Möger Pedersen, said: "The situation in Ukraine is highly disturbing, but thanks to the record returns generated in 2021, our members do not need to be concerned about their pension savings, although 2022 got off to a bumpy start due to financial market turmoil and the massive and long-lasting geopolitical and security policy changes.

"Our younger members are many years away from retirement and have plenty of time to recoup equity market losses.

“Our older members have lower risk profiles, and due to our equalisation mechanism the outlook for not having to reduce pension benefits is good – even if the current market turmoil prevails for a long time.”

The company’s financial report also confirmed that PensionDanmark sold off all Russian government bonds and shares and loans in companies which the Russian government has a dominant ownership share, prior to the invasion.

This was alongside broader progress on corporate social responsibility reporting, with infrastructure and private debt investments added to the schemes carbon emission measurements, now encompassing 60 per cent of total investments.

”Only by taking the lead and continually adding to our disclosures can we identify and raise awareness of the footprint left by our investments across climate, the environment, people and societies. This is instrumental in our structured efforts to make a difference,” Möger Pedersen added.

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