Danish pension fund, PFA, achieved returns of up to 20.6 per cent in 2021, delivering a total return of DKK 39.2bn, with customer funds reaching a record high DKK 647bn as a result.

Amid the strong performance, PFA has increased total payments by DKK 3.1bn, resulting in a overall total of DKK 43.8bn for the year.

The scheme also reported a continued strong solvency rate of 271 per cent in 2021, compared to 278 per cent in 2020.

PFA's financial results revealed that customers in PFA plus have benefited from returns of up to 20 per cent, whilst those in PFA Klima Plus will benefit from returns of up to 20.6 per cent.

Those in profile C, with 15 years to retirement, will have benefited from returns of 15.3 per cent, with PFA confirming that 75 per cent of customers in PFA Plus and PFA Klima Plus are in a profile C or D, and have benefited from being in profiles with a higher risk.

The PFA's alternative investments portfolio also delivered returns of 16.3 per cent, ending the year at DKK 57bn, although this included a “realised and regrettable loss” on an investment in the aircraft leasing company Nordic Aviation Capital, which was severely affected by pandemic.

Whilst this resulted in a total loss of DKK 3bn, PFA clarified that there will be no further loss on the investment, as it is no longer part of PFA's portfolio.

Indeed, PFA emphasised that it has made a number of adjustments to its investment strategy since 2020, with significant changes made to the equity portfolio and asset mix in PFA’s low-and high-risk funds in particular.

Commenting on the financial results, PFA Group CEO, Allan Polack, said: "Again in 2021, PFA continues the stable growth.

"It is gratifying that we can welcome 412 new corporate and organizational customers (net) and show a growth in total payments of 7.6 per cent in a very competitive market is a high figure, which has also contributed to a sharp increase in total customer funds, which has now rounded DKK 647bn against DKK 601bn in 2020.

"That we can continue to retain and attract customers in 2021 is an expression of the general satisfaction with our overall value proposition and the good dialogue we have with customers.

"We have also further developed and increased our focus on our many customer benefits, such as our rental homes and senior offers. Customers have welcomed this.

"In 2021, we will create a total return of more than DKK 39bn against DKK 31bn in 2020. Strong growth and relaxed monetary and fiscal policy have lifted the stock markets to new heights, and in general most companies have progressed skilfully and strongly.

"It has especially rewarded customers who have taken high risk with returns of over 20 per cent, but in general many customers have had their pension savings well padded."

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