Danish pension company Velliv returned between 3.6 per cent and 4.5 per cent for a typical customer with medium risk and 15 years to retirement in the first four months of 2026, according to an update.

Despite the positive returns, Velliv chief strategist, Frederik Romedahl Poulsen, noted that this year had thrown up “many stumbling blocks”.

He added that the positive returns could change as the year goes on, and the pension company will therefore be monitoring risks relating to its investment portfolios to ensure they are in line with the evolving risk landscape.

“April was a strong month for investors, but the picture was far from uniform,” Poulsen said.

“The Iran war continued, and although the negotiations occasionally showed signs of progress, we are actually almost in the same place as at the beginning of the month.

“The temporary ceasefire has dampened the noise a little, but the Strait of Hormuz remains blocked, and the price of oil is therefore still high. This puts pressure on both consumers and companies.”

However, the stock market improved in April, with global stocks rising by approximately 8 per cent in Danish kroner during the month.

This was centred around the ‘AI wave’, where several of the largest companies’ price increases brought indices up.

“That upswing has largely continued into May, where stocks have continued to move upwards,” Poulsen noted.

Poulsen highlighted the scepticism around whether AI momentum would continue much longer, and therefore described diversification of equity exposure as “key”.

“I still believe that in other parts of the stock market there is still a lot of potential to rise, when we hopefully soon get signs of real progress in the negotiations to stop the Iran war and open up oil transport,” he added.

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