ATP, Hilleroed, Denmark, returned 6.7% in the six months ended June 30 in its investment portfolio, bolstering assets to 800 billion Danish kroner ($119.2 billion).
That compares with a 12% return for the first six months of 2015. However, assets increased 15.8% over the year ended June 30, and increased 5.6% over the three months ended June 30, according to a financial update.
The update was released the day before CEO Carsten Stendevad announced his resignation from the fund for family reasons.
Assets are split into two portfolios: an investment portfolio and a hedging portfolio. Overall, investment and hedging activity returned 5 billion Danish kroner for the first half 2016 vs. 8 billion Danish kroner for the same period 2015.
Returns were boosted by the pension fund's credit investments, which gained 1.5 billion Danish kroner. Commodities added 1.1 billion Danish kroner, while real estate generated 1 billion kroner in returns.
“Our hedging strategy has yet again proved itself effective and has protected our members' guarantees despite the steep decline in interest rates,” Mr. Stendevad said in a statement accompanying the update.
The pension fund's Danish, international and private equity allocations generated a total 3 billion Danish kroner of returns. Private equity returned 3.6 billion Danish kroner, including the fund's direct investment in DONG Energy, which returned 2.9 billion Danish kroner in the first half this year. Listed Danish equities investments returned 100 million Danish kroner, but listed international equities lost 700 million Danish kroner over the period.
