Danish pension company Velliv achieved returns in 2023 of between 9.6 per cent and 12.9 per cent on its VækstPension pensions products for customers with 15 years to payout, taking on medium risk.

The company reported that VækstPension Active achieved a 9.6 per cent return in 2023, while VækstPension Imprint achieved 12.3 per cent and VækstPension Index returned 12.9 per cent.

The pensions provider noted that it was “particularly risky investments such as shares” that rose during the past year, meaning that the return was greatest for its customers with the highest risk and the longest time to payout.

Velliv also attributed its overall positive returns to, amongst other things, the “massive interest rate falls, driven by falling inflation rather than recession fears, which was good news for both bonds and stocks”.

Small cap shares also delivered a strong comeback, which raised the portfolio's total return, the provider added.

According to Velliv, the year ended with “a strong final spurt” that resulted in a return in the fourth quarter of 6.3 per cent in VækstPension Active and 7.4 per cent in both VækstPension Imprint and VækstPension Index.

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