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Return on investments

Return on investments at the end of April 2022 for the different savings products

At 29 April P+ had a YTD return of -7.0 percent which is a drop of 2.8 percentage point compared to end-March. 

The month's return was in particular negatively affected by equity investments which after a short-lived rebound in March lost 7 percent during April. Also bonds and credit investments lost ground in a month characterised by nervous investors and fear of recession. However, the pension fund's illiquid assets generated a positive a return of just below 2 percent which alleviated the total loss somewhat. 

The interest rates continued to rise during the month as the investors prepared for interest rate increases from the global central banks as a result of the high inflation rate. Both the American and European central bank have adopted a stricter rhetoric and are determined to curb price increases before they impact the wage formation. Accordingly, the consumers can anticipate both higher deposit rates which all else being equal may motivate to increased savings and higher interest rates on loans which may curb consumption. 

The conflict between Russia and Ukraine is still an important, but not as dominant factor. The western countries' sanctions against Russia will undoubtedly hit the Russian economy hard, but the majority of the world's countries have not yet joined the western sanctions and thereby put maximum pressure on Russia. As the Russian economy only constitutes a very small part of the global economy, the sanctions are expected to affect the financial markets to a limited extent. 

 

 

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Balance (average rate)

 

DKK 133,898 million

-2.69 %

-7.01 %

P+ Grundlag (average rate)

 

DKK 6,415 million

-5.28 %

-15.17 %

 

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Market rate

 

     

 

Aktiemax

DKK 559 million

-4.02 %

-9.89 %

 

Vælger

DKK 2,279 million

-2.69 %

-7.01 %

 

Obligationsmax

DKK 19 million

-1.59 %

-4.60 %

 

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Life cycle

 

DKK 94 million    

 

High*

 

-4.02 %

-9.93 %

 

Middle*

 

-3.53 %

-8.84 %

 

Low*

 

-2.48 %

-6.54 %

 

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Sustainable*

 

DKK 1 million -4.53 % -9.56 %

 

 

 

Return

 

 

Assets under management

Last month

YTD

 P+ total

 DKK 143.714 million

 -2.82 %

 -7.41 %

*Return for a member who has 15 years until retirement.

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

 

Return on asset classes

  Return P+ Balance,
P+ Life cycle and P+ Market rate
Return P+ Sustainable
Asset classes Last month YTD Last month YTD
Government bonds and mortgage bonds -2.93 % -7.61 % -2.12 %  -6.80 %
Investment grade bonds -0.56 % -0.34 % -0.61 % -0.37 %
High Yield bonds -1.26 % -3.00 % -1.24 % -2.75 %
Emerging Markets bonds -2.38 % -5.98 % -5.74 % -9.39 %
Global equitites 5.86 % -12.30 % -6.40 % -12.43 %
Emerging Markets equities -1.76 % -7.50 % -3.71 % -9.17 %
Private Equity 2.00 % 1.79 % 2.00 % 1.79 %
Infrastructure and forest 2.81 % 5.24 % 2.81 % 5.24 %
Real estate 1.14 % 4.14 % 1.14 % 4.14 %
Hedge funds and special investments 0.57 % -7.93 % -1.55 % -9.04 %

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.

 

 

 

Return

 

 

 

Savings product

Profile

2017

2018

2019

2020

2021

 

 

 

 

 

 

 

P+ Balance (average rate)

 

9.54 %

-1.65 %

11.44 %

6.65 %

14.18 %

P+ Grundlag (average rate)

 

1.84 %

5.06 %

10.92 %

10.76 %

-6.03 %

P+ Market rate

 

 

 

 

 

 

 

Aktiemax

14.46 %

-9.06 %

23.90 %

11.92 %

22.12 %

 

Balance

9.21 %

-1.81 %

11.35 %

6.56 %

14.10 %

 

Obligationsmax

3.73 %

1.27 %

3.34 %

4.39 %

3.34 %

 

 

 

 

 

 

 

P+ Life cycle

 

 

 

 

 

 

 

High*

 

 

 

 

3.00 %

 

Middle*

 

 

 

 

2.83 %

 

Low*

 

 

 

 

2.44 %

 

 

 

 

 

 

 

P+ total

 

 

 

 

 

 

 

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.

Return on average rate products (N1) as a percentage

 25 years
(1996-2020)

5 years
(2016-2020)

 1 year
(2020)

P+

7.2

6.5

7.0

Academic pension funds (average)

 7.1

6.2

 5.5

Labour market pension funds (average)

 6.9

5.9

 5.1

Commercial companies (average)

6.1

4.2

 4.6

The sector (average)

6.7

5.6

 5.1

Source: The companies' annual accounts.