Denmark’s pension fund for industrial employees, Industriens Pension, has returned 7.6 per cent in the first half of 2019, growing by DKK 12.7bn (€1.7bn).

The returned came from strong performance across the listed equity and credit bond portfolios, bringing the total assets under management up to DKK 180bn (€24bn).

So far, 2019 has been marked by the continued trade conflict between the US and China, something investors have been waiting for in vain, the pension provider said.

In addition, central banks’ hinting at an easing of monetary policy, which has lifted the stock market significantly, and the falling interest rates have sent a wide range of bonds increase in price.

Industriens Pension CEO Laila Mortensen commented on the half-year results, noting that the results came from another drop in interest rates and a really good six months for both equities and credit bonds.

“It is really visible in the pension assets, which have grown significantly this year. The most important thing, however, is our strong results in the long run, because this is where we really do create value for the members,” Mortensen said.

Industriens Pension’s six-month results reported a 17.4 per cent return on Danish equities, while foreign equities achieved a return of 16.5 per cent. Emerging market bonds contributed positively with a 9.8 per cent return.

Investment grade bonds provided a return of 6.7 per cent, high yield returned 6.4 per cent, infrastructure saw a result of 5.1 per cent and unlisted equities returned 4.7 per cent.

Over the past 10 years, a period which has seen large fluctuations in the financial markets, the average annual return has been 8.7 per cent.

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