Industriens Pension returns 8.2% in H1 2021

Denmark’s Industriens Pension made a return of 8.2 per cent for its total portfolio across all age groups in the first half of 2021, equating to DKK 16.3bn.

For members with 20 years to retirement, the return was 12.3 per cent in the first half, while the return for members with five years to retirement was 7.8 per cent. The difference is due to the fact that the investment risk decreases as one approaches retirement age, the pension fund noted.

Commenting on the strong result, Industriens Pension CEO, Laila Mortensen, said: “We have received very good returns from several different asset classes in the first half of the year. The best performing asset class has been unlisted equities, where American venture funds have especially really delivered great returns.

“At the same time, listed shares across a broad spectrum have also been raised by the prospect of good growth in both Europe and the USA,” she said.

She points out that effective vaccine rollouts in Europe and the US and the reopening of communities have created good growth prospects, which in turn has lifted market sentiment and the valuation of both listed and unlisted assets.

Conversely, large parts of the bond market have had a difficult half-year, as expectations of rising inflation have led to rising interest rates and thus falling bond prices.

“All in all, it has been a really good half-year with high returns for the members. Of course, we are really happy about that, but there should be no doubt that the most crucial thing for us is our solid long-term results. It is the long-term results that really impacts the members' savings,” Mortensen noted.

Over the past 10 years, Industriens Pension has achieved an average annual return of 8.1 per cent for the total portfolio across all age groups. The total investment assets in Industriens Pension now amount to DKK 216bn.

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