Denmark’s AkademikerPension made a return of 5.69 per cent as at 30 June, it has revealed.

However, AkademikerPension investment manager, Anders Schelde, has warned that although the financial markets have brightened up, the reopening up of the economy is putting pressure on inflation.

“The half-year return is as expected. We are about to crawl out of the shadow of the coronavirus. The economies are developing, the gears are moving, it is moving forward,” he said.

He added that in particular, the stock market is experiencing returns of 10-13 per cent, but as inflation is rising, interest rates are too, which means that bond market prices are falling. He expects these trends to last for the rest of the year.

Despite this, Schelde said the pension fund does not want to change its risk profile by investing more in stocks and less in bonds.

“What if we are wrong? In the first half of the year, our exposure to equities has actually been at the top of the framework set by the board of directors. And so, we invest in the long run. And we are certainly very satisfied, as the return looks at the moment,” he explained.

The fund has improved on last year when during the spring downturn as a result of the pandemic, it recorded a return of almost -13 per cent. However, by the end of the year, AkademikerPension's members ended up with an annual return of 8.2 per cent before tax, which corresponded to NOK 10.6bn.

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