Danish fund ATP reports strong returns despite “turbulent” 2016
Written by Talya Misiri
Danish state pension fund ATP has announced a gross investment return of DKK 15.3bn before tax and expenses, following a “turbulent year”.
Net results for 2016 totalled DKK 9.3bn before its life expectancy update. However, as its members’ life expectancy has risen to more than expected, the ATP Supervisory Board decided to transfer the DKK 9.9bn bonus potential to existing guarantees. As a result, the annual results amounted to DKK 0.6bn.
Private equity and credit investment also made considerable additions to investment return, at DKK 6.6bn and DKK 3.8bn, respectively.
Declining interest rates last year also lead the value of guaranteed pensions to increase to DKK 659bn, while the fund’s liabilities also increased in line with this.
ATP provided DKK 10.6BN for tax on pension savings returns in 2016 and total assets now stand at DKK 759bn.
Furthermore, the Danish fund’s administration expenses continued to decrease in the year by 17 per cent, ending at DKK 48 per member per year, down by DKK 9 from 2015. ATP’s administration expenses have reduced by 30 per cent over the last four years.
ATP CEO Christian Hyldahl said: “2016 was a satisfactory year for ATP – and for our members. It was a turbulent year, but ATP nevertheless managed to produce a good investment return. The results have enabled ATP to further prolong the lifelong pension guarantees, as the life expectancy of the Danish population is increasing more than expected.”