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Pension Funds

PensionDanmark sees 16.6 billion Danish kroner return in 2017

PensionDanmark, Copenhagen, reported an investment return of 16.6 billion Danish kroner ($2.7 billion) for the calendar year 2017.

A spokesman said that equated to an overall investment return of 8.5%, vs. 7% in 2016.

The pension fund made a 13 billion kroner investment gain in 2016. It had 217.7 billion kroner in assets as of Dec. 31, a 5.2% increase vs. Dec. 31, 2016.

A statement accompanying the update said financial markets in 2017 were characterized by "a broadly founded, global economic recovery with high growth in almost all regions."

The pension fund split out investment returns by participant age. It said participants under the age of 41, whose investments are allocated to a higher share of equity and risk than other participants, achieved a 9.9% return in 2017. In 2016, this cohort achieved a 7.1% return. For those aged 65, the investment return was 6.9%, compared with 7.3% in 2016. For portfolios for those aged 50 and 60, the returns were 9.5% and 7.8%, respectively. Asset allocations were not available.

Equities returned 13% in the fund's portfolio, while private equity gained 10%, real estate returned 9.5% and infrastructure recorded a 12.8% gain in 2017.

"Investments in equity were benefiting of the positive development in the global economy," said Torben Moger Pedersen, CEO at PensionDanmark, in the statement.