ATP, Hilleroed, Denmark, returned 6% in the first quarter of 2015, boosted by record returns on Danish equities, the pension fund announced Thursday.
ATP’s total assets grew 9.73% over the quarter ended March 31 to 772.6 billion Danish kroner ($111.1 billion). Liabilities increased 10.32% to 671.1 billion kroner during the period, for a funded status of 115%.
ATP’s investment portfolio is divided into five risk classes. As of March 31, the pension fund had a risk allocation of 55% equities, 29% inflation, 9% credit, 5% commodities and 2% interest rates.
ATP did not report asset class returns by percentage but by the actual amount. For the quarter ended March 31, the pension fund added 6.1 billion Danish kroner as a result of gains in the equity portfolio (4.7 billion kroner attributable to Danish equities, 900 million kroner to private equity and 500 million kroner to listed international equities), a news release said.
Credit-related investments, which consist primarily of high-yield bonds and loans to credit institutions and funds, added 600 million kroner in the quarter.
Within the inflation risk class, illiquid property and infrastructure investments added 500 million kroner and 400 million kroner, respectively.
ATP’s long-term inflation hedge produced the lowest returns, posting a loss of 1.2 billion kroner due to falling interest rates and falling inflation.
Within the commodities risk class, oil investments recorded a loss of 400 million kroner in response to falling oil prices.
The interest rate risk class posted a loss of 500 million kroner.
“It has been an unusual quarter, especially in the European financial markets, with interest rates reaching almost unthinkable levels, currency turmoil and surging equity prices. ATP preformed well in these market conditions,” said ATP CEO Carsten Stendevad in the release.