Denmark's Sampension has generated returns of up to 14 per cent for some of its customers in the first half of 2021, it has revealed.

Publishing its interim results, Sampension said the first six months of the year have offered extremely good returns in Sampension. Customers with market-rate pensions, in which there are no guarantees upon retirement, have received returns of up to 14 per cent before tax, depending on their age and risk level of their investments.

The total return in the Sampension community, which includes schemes such as ISP Pension, Arkitekternes Pensionskasse and Pensionskassen for Jordbrugsakademikere & Dyrlæger, was DKK 11.9bn in the first half of 2021.

Sampension CEO, Hasse Jørgensen, said: “Our most important task is to ensure customers the best possible pensions. Therefore, we are very pleased that customers have achieved some of the market's highest returns in the first six months of the year. The returns are highest for younger customers with a high-risk level of investments. However, customers with a lower risk level and those who are approaching retirement age have also received good returns.”

On average, market-rate pension customers received 8.5 per cent in return before tax in the first half of the year. Younger customers with a high-risk level received the highest returns in the half year of up to 14 per cent.

“Investments in global equities, in particular, including value equities, have paid off in the first half of the year, where we also benefited from being well positioned for the rising interest rates that we saw at the beginning of the year. Our unlisted investments have also continued to perform well and have delivered solid returns in the first six months of the year. This applies in particular to investments in unlisted shares (private equity), but also in properties and infrastructure,” Jørgensen explained.

During the first half of the year, Sampension welcomed a number of new corporate customers who have chosen Sampension as a supplier of their employees' pension schemes. These include Muskelsvindfonden and AffaldVarme Aarhus.

“We are pleased that more and more companies are finding us attractive as a pension provider. Our focus is to make pension schemes more valuable with low costs, good returns, flexible products and competent customer service, and we have fixed low prices in the tender rounds, both in terms of advice, service and investment management,” Jørgensen said.

He expects that there will be several new company agreements on the way to Sampension this year – not least as a result of the Danish Financial Supervisory Authority's new so-called SUL executive order, which means that the pension companies' expenses and income in their insurance business must balance.

“With the executive order, it will be more difficult for pension companies to give discounts to selected customers on health and accident insurance and on investment costs. All other things being equal, this will make our offer stronger in the tender rounds, as we do not change prices from time to time and do not differentiate between large and small companies – or people at work and retirees. It is most fair for both new and existing customers that everyone gets the same price and that there is no redistribution between the customers,” Jørgensen concluded.

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