Danish pension fund ATP posts 5.5% return in 2023

ATP, Hilleroed, Denmark, achieved a 5.5% investment return in 2023, while its hedging portfolio also performed as intended in a challenging year.

The pension fund's investment return corresponded to a 5.7 billion Danish kroner ($844 million) gain in 2023, it said in its latest financial report. In 2022, the investment return was -40.9%, equivalent to a 64.5 billion kroner loss.The pension fund has generated an average annualized return of 12 billion kroner over the last 10 years, it said in a news release accompanying the report.

"ATP is in a good place," said CEO Martin Praestegaard in the release. "Our investment portfolio produced a solid result in 2023 after large fluctuations in both positive and negative directions in the previous years. We are true to our investment strategy and think long-term as an investor. Over time, we believe that our investment approach will ensure the members get what we were created to provide: As high a pension as possible while also at the same time ensuring that the pension is predictable, guaranteed and lifelong."

The largest positive contribution to investment returns came from government and mortgage bonds, which gained 4.9 billion kroner compared with a 60.6 billion kroner loss in 2022; and listed equities, which gained a total of 4.5 billion kroner for the year vs. a 20.7 billion kroner loss in 2022. Elsewhere in the investment portfolio for 2023, credit gained 2.8 billion kroner, while private equity gained 2.7 billion kroner and infrastructure added 391 million kroner.

Negative returns were recorded in inflation-related assets at -2.3 billion kroner — an improvement on 2022's loss of 11.8 billion kroner; and real estate at -2.2 billion kroner.

Comparable returns were not available.

Net assets grew by 5.1% to 712 billion kroner.