Bankpension, a pension fund for employees in the Danish financial sector, has reported "extremely unsatisfactory" 2008 results, with yields after tax standing at -19.7 per cent.

In its annual report of results, Bankpension says that its gross yield including interest cover before tax for 2008 was -23.1 per cent, and reveals that the return on investment before currency and interest cover, before tax, was -37.2 per cent for alternatives. Core shares returned 38.9 per cent, and core bonds 6.9 per cent.

The negative yield has, however, resulting in a drop in overall reserves, falling from 26 per cent to 11.4 per cent in 2008. Administration costs per member of the pension fund rise from DKK 1,038 to DKK 1,827, which were attributed to the fund having charged all costs for the transition to the new pension administration system in 2008 to income.

Bankpension said these costs included both the commissioning charge, and for conversion, and had they not charged them to income the costs ratio would have been 2.52 per cent, with costs per member at DKK 1,175.

However, 2009 is does not have a positive outlook with Bankpension expecting an investment yield close to zero. In its report, it said expectations are 'extremely uncertain, since we now assess that there is not inconsiderable risk of a deep recession and considerable price decreases'. Bankpension will not, however, be changing their overall investment strategy.

Bankpension added that in 2009, the Board of Directors will continue its focus on the fund's long-term reserve situation, which will be viewed in the light of the changed risk scenario. This, it said, had been affected by the large financial losses in 2008.

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