Return on investments

Monthly report – April 2023

The YTD return in P+ was 5.8 percent on 30 April which is a gain of 1.0 percentage points compared to the end of March.

The month’s portfolio returns accounted for 1.1 percent for shares, 1.0 percent for credit bonds, 1.7 percent for real assets, 2.0 percent for special investments and 0.1 percent for bonds. 

In the wake of the market volatility in March, April on the other hand was characterised by more steady markets. Most asset classes delivered modest, but positive returns even though a number of factors still contribute to uncertainty. 

The fallouts from the banking sector turmoil, the inflation rate development as well as a number of economic indicators were among the most important market themes in April. The inflation rates in the US and Europe are still above the desired level of approx. 2 percent, and it is expected that both the Fed and the ECB will increase the interest rate in May. The banking sector turmoil has, however, curbed the expectation of the number and the size of the interest rate increases. The ECB is expected to increase the interest rate by 25-50 basis points, while the Fed is expected to make its last interest rate increase of 25 basis points. 

The economic indicators, published in April, illustrated an ambiguous picture of the economy in both Europe and the US. Thus, there is substantial uncertainty about the strength of the economies which results in a more blurred picture of the future development. The banking sector turmoil has not yet abated, and the market is still awaiting if the interest rate increases will impact the small and medium-sized banks, especially in the US, further. Finally, focus on the US debt ceiling is sharpened, as the politicians must reach an agreement that will increase the debt ceiling. This may turn into a political fight where Democrats and Republicans will pressure each other which again may cause market volatility as we approach deadline for the agreement. 

 

 

 

 

*Return for a member with 15 years to retirement.

The returns are updated monthly on the 13th banking day at the latest.

Development in return on investments

Development in return on the investment profiles P+ Life cycle and P+ Sustainable

Return on asset classes

You can find information about the composition of the assets in the different savings products here

Historical returns

In below table you can see the last 5 years' return on the different savings products. P+ Life cycle was introduced in November 2021, and the return only covers the last 2 months of 2021.

 

Returns compared with other pension companies

The overview is based on 2020 figures which are the most recent data. In the comparison the companies are grouped in relevant segments.