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Return on investments

See the pension fund's returns on investments.

Monthly report – December 2022

The YTD return in P+ is -12,3 percent at 31 December which is a decrease of 3.0 % percentage points compared to end-November.

The month’s portfolio returns accounted for +2.4 percent for special investments, +0.5 percent for credit bonds, -1.6 percent for bonds, -1.9 percent for real assets and -4.5 percent for shares. Hence, this month’s negative return was primarily driven by falling prices on the stock market.  

In December, the interest rate as well as inflation were the ongoing dominant market themes. The continued high inflation in both the Eurozone and the US caused both the American central bank (Fed) and the European central bank (ECB) to once again raise the interest rate by 50 basis points which met market expectations. Both central banks are expected to raise the interest rate further during 2023, and the market expects that the Fed raises the interest rate by 25 basis points on its next meeting in February.

Despite the interest rate hikes being in line with market expectations, the stock market declined during December. This was primarily due to a more aggressive announcement than expected from both the Fed and the ECB about future interest rate hikes. After the central bank meetings in the middle of December, we have seen a sideways market waiting for key figures for i.a. inflation which come in January, while the general market activity was moderate in the last weeks of December due to Christmas and the New Year. PMI data from the US and the Eurozone are still below 50 indicating an economic slowdown.  

After a challenging 2022 we have now started a new year where i.a. inflation, the interest rate level and Russia’s invasion of Ukraine will continue being the dominant market themes. Besides, focus will be on whether the central banks in Europe and the US are able to orchestrate a so-called soft landing, or whether recession hits. This may very well be decisive of whether we will see a more persistent positive turn on the markets in 2023, or we must deal with another volatile year.

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Balance (average rate)

 

DKK 126,843 million

-3.22 %

-12.27 %

P+ Grundlag (average rate)

 

DKK 5,415 million

-6.71 %

-26.70 %

 

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Market rate

 

     

 

Aktiemax

DKK 546 million

-4.62 %

-15.59 %

 

Vælger

DKK 2,640 million

-3.18 %

-12.30 %

 

Obligationsmax

DKK 18 million

-1.98 %

-9.55 %

 

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Life cycle

 

DKK 608 million    

 

High*

 

-4.64 %

-16.61 %

 

Middle*

 

-4.11 %

-14.33 %

 

Low*

 

-2.97 %

-11.68 %

 

 

 

 

Return

 

Savings product

Profile

Assets under management

Last month

YTD

 

 

 

 

 

P+ Sustainable*

 

DKK 27 million

-4.09 %

-13.82 %

 

 

 

Return

 

 

Assets under management

Last month

YTD

 P+ total

 DKK 136.098 million

 -3.37 %

 -12.97 %

*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

  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 -2.95 % -16.11 % -1.40 %  -11.34 %
Investment grade bonds

0.08 %

0.90 % 0.12 % 0.74 %
High Yield bonds 0.61 % -3.64 % 0.51 % -0.93 %
Emerging Markets bonds -0.40 % -9.39 % 0.21 % -14.92 %
Global shares -5.01 % -18.07 % -4.99 % -16.69 %
Emerging Market shares -5.22 % -15.62 % -5.07 % -16.09 %
Private Equity -0.16 % -1.72 % -0.16 % -1.72 %
Infrastructure and forest 0.72 % 10.34 % 0.72 % 10.34 %
Real estate -3.28 % -3.49 % -3.28 % -3.49 %
Hedge funds and special investments 2.44 % -7.48 % 3.51 % -7.04 %

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

2018

2019

2020

2021

2022

 

 

 

 

 

 

 

P+ Balance (average rate)

 

-1.65 %

11.44 %

6.65 %

14.18 %

-12.27 %

P+ Grundlag (average rate)

 

5.06 %

10.92 %

10.76 %

-6.03 %

-26.70 %

P+ Market rate

 

 

 

 

 

 

 

Aktiemax

-9.06 %

23.90 %

11.92 %

22.12 %

-15.59 %

 

Balance

-1.81 %

11.35 %

6.56 %

14.10 %

-12.30 %

 

Obligationsmax

1.27 %

3.34 %

4.39 %

3.34 %

-9.55 %

 

 

 

 

 

 

 

P+ Life cycle

 

 

 

 

 

 

 

High*

 

 

 

3.00 %

-15.61%

 

Middle*

 

 

 

2.83 %

-14.33 %

 

Low*

 

 

 

2.44 %

-11.68 %

 

 

 

 

 

 

 

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.