Return 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 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.