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Pension Funds

Alternative investments lead PensionDanmark’s 6-month returns

Updated with correction

PensionDanmark, Copenhagen, reported an investment return of 1.1 billion Danish kroner ($172 million) for the six months ended June 30.

The pension fund's assets grew 2.8% for the six months to 239.7 billion kroner. Assets were up 7% compared with figures as of June 30, 2017.

An update Tuesday said a 40-year-old participant received a 0.5% return on their assets; a 65-year-old participant achieved a 0.6% return for the six-month period.

The highest contributors to the total investment return were real estate, at 4.4%, private equity at 4.2% and infrastructure at 2.7%. Credit funds added 2.7% and Danish government bonds and mortgage bonds gained 0.7%.

Listed equities lost 0.2%, while credit bonds and loans lost 1.8%.

Individual asset allocations and an overall return percentage for the six-month period were not available. As of June 30, a participant under 41 years old had a 59.5% allocation to equities and credit, 25.6% to alternatives and 14.9% to investment-grade assets. A participant aged 65 or older had a 42.4% allocation to investment-grade assets, 35.5% to equities and credit, and 22.1% to alternatives.

"The half year has been challenging with moderate investments returns close to zero for both equity and bonds alongside ... substantial fluctuations in especially share prices," said CEO Torben Moger Pedersen in a statement accompanying the update. "In that perspective, PensionDanmark has achieved satisfying results."