“The first six months delivered a solid investment return and a sizable increase in the regular premiums, given the positive job market development effecting companies that employ PensionDanmark members,” says CEO Torben Möger Pedersen.
“The latest market developments show continuous instability in the global economy, indicating that we may face a longer period of low and more volatile returns on stocks and bonds. Due to this instability, our primary focus is to compose a portfolio that is resistant to large market fluctuations. This is why we have increased our investments in stable alternatives, such as infrastructure and real estate. They now count for 20 percent. of the portfolio,” says Torben Möger Pedersen.
In a five-year term PensionDanmark has achieved a total before-tax return of 61 percent for a member with pensioning due in ten years.
“As a long term investor our goal is to secure a good return over a number of years without having to take large risks, which we have succeeded with,” says Torben Möger Pedersen.
The balance surpassed 181 bn. DKK during first half-year of 2015. The number of members has increased with 25.000 to a total of 677.000.
The costs related to the first half-year have been affected by the repayment of excess paid VAT, due to a settlement with the Ministry of Taxation regarding an ongoing dispute on this subject. Due to this matter, the administration costs for the first half-year 2015 are not comparable to last year’s first half-year. Adjusted for these extraordinary factors, the costs are reduced from 2,1 to 2,0 percent of the premiums.