ATP, Hilleroed, Denmark, returned 9.9% in 2012, boosting total investment assets to 730 billion Danish kroner ($133 billion), according to the pension fund's preliminary annual report.
The fund's 2012 rate of return trailed the 26% return achieved in 2011, mostly due to a decrease in the return from the fund's hedging portfolio, according to the annual report.
In the 10 years ended Dec. 31, 2011, ATP's annualized return was 8.8%, or 3.9 percentage points higher than the average figure for its peer funds, according to separate data compiled by the Danish Financial Supervisory Authority and reported in the annual report.
ATP did not report asset class returns by percentage but by the actual amount. In the year ended Dec. 31, the fund added 45.4 billion kroner as a result of gains in the hedging portfolio, compared to 107.9 billion the previous year. The investment portfolio returned 12.5 billion kroner in 2012, compared to 16.8 billion kroner in 2011.
Of the 12.5 billion kroner returns from the investment portfolio, which is divided into five risk classes, the credit risk class added the most with 4.6 billion kroner. The equity risk portfolio, which includes private equity, also rose by 4.3 billion kroner, according the report.
