ATP, Denmark’s largest pension fund, has posted a 39.7 percent return for its investment portfolio in 2019, amounting to DKK 40.7 billion ($6 billion).
Real estate, infrastructure, credit, private equities, and government and mortgage bonds, as well as investments in foreign and Danish equities, contributed to the rosy results. ATP said inflation-related instruments, such as long-term hedges against rising inflation, contributed a negative return of DKK 2.4 billion ($353 million).
“2019 has been a fantastic investment year, and we have been able to take advantage of the favorable market conditions,” said Bo Foged, CEO of ATP. “The record return is a result of many years of focused efforts to optimize the portfolio construction and the market risk level, which have strengthened the basis of ensuring the real value of our members’ pensions.”
ATP said it expects lower returns and greater fluctuations in the coming years.
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