Denmark’s PFA Pension has reported a 6.3 percent investment return in first quarter 2021, representing DKK 10 billion ($1.6 billion).
According to Kasper Lorenzen, CIO of PFA Group, the increases in interest rates created a new risk dynamic, which will help to dictate future developments in the financial markets.
“Over a number of years, we have built up a broad portfolio of properties and alternative investments, which provides resilience in times of pressure on bond yields,” added Lorenzen. “In addition, we have adjusted our investment processes over the past year to make it easier to accelerate and take risks when there is a prospect of favorable conditions in the markets. This provides a good foundation going forward, when we will have to navigate the intersection between positive growth expectations, increases in interest rates and concerns about inflation.”
According to PFA, alternative assets saw a 1.6 percent return in first quarter 2021; and p
