Denmark’s Industriens Pension sees returns of 5.1 per cent in 2020

Denmark’s Industriens Pension delivered a return of 5.1 per cent in 2020, equivalent to DKK 9.7bn.

Its results report stated that although several asset classes yielded positive returns, listed equities performed best.

Despite equities and other asset classes falling in March due to the Covid-19 pandemic, markets recovered “faster than feared”, which Industriens Pension attributed to help from central banks, fiscal assistance packages and the prospect of effective vaccines.

“It has been a very unusual and turbulent year, but it ended with sensible returns for all age groups,” said Industriens Pension CEO, Laila Mortensen. 

“We have received very good returns from both Danish and foreign equities, while several of the unlisted asset classes have had a more difficult year as a result of the corona pandemic.”

Returns on listed shares totalled 14.3 per cent in 2020. Industriens Pension said that Danish and US shares rose sharply in 2020, while large European stock markets had a “harder time” recovering from the market turmoil in the spring.

It noted that infrastructure and foreign real estate unlisted asset classes had a “difficult year”.

Over the past 10 years, Industriens Pension delivered an average annual return of 7.3 per cent for the total portfolio across all age groups.

Since its inception in 1993, its portfolio has seen average annual returns of 8.7 per cent.

“We are proud of so many years of high returns across all age groups, and we will continue to optimise the portfolio in relation to the current market situation,” added Mortensen. 

“At the same time, the corona crisis has not changed our expectations of continued reasonable returns in the long run, albeit at a lower level than we have been accustomed to for the past ten years.”

The total investment assets in Industriens Pension now totals DKK 199bn.

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