Danish pension company PensionDanmark saw a return of -6.5 per cent in 2022 for a typical member aged 45, its annual report has revealed.

Totalling DKK -18bn, PensionDanmark’s investment results produced returns of between -6.5 per cent for members under the age of 46 and -4.3 per cent for members aged 67.

The war in Europe triggered double-digit percentage losses on the pension company’s equity and bond investments, although it was able to limit losses to single digits through its investment strategy.

Amid a changing global landscape, PensionDanmark stated that it will increase focus on investment opportunities contributing to accelerate the green energy transition and increase defence budgets across Europe.

In 2022, its investments in sustainable energy and infrastructure totalled DKK 14.3bn, a year-on-year increase of 18 per cent.

The number of PensionDanmark’s contributing members increased by 15,000 in 2022 to 416,000, while the total number of members reached 815,000.

Total contributions rose from DKK 14.6bn in 2021 to DKK 15.2bn in 2022.

Alongside its annual report, PensionDanmark published its corporate social responsibility report, which revealed that its climate accounts encompassed 80 per cent of its investments, compared to 50 per cent in 2020 and 60 per cent in 2021.

In 2022, the climate footprint of PensionDanmark’s listed equities and bonds was 9.8 tonnes of CO2 equivalents per million kroner invested, making it 0.7 tonnes shy of achieving its 2025 target of 9.1 tonnes per million kroner.

“After a historic year dogged by war, inflation, rising interest rates and massive uncertainty, we are pleased to report good results in 2022,” commented PensionDanmark CEO, Torben Möger Pedersen.

“The proportion of active members has grown active and we have emerged from a year of financial turbulence with limited losses.”

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