Equity behind the lion's share of Industriens Pension's EUR 4.5bn return
In 2021, listed and unlisted equities have particularly proven to be worth the time for pension firm Industriens Pension.
In total, the pension fund can present a return of DKK 33.6bn (EUR 4.5bn), equating to 16.8 percent of the entire portfolio.
"Despite Covid-19 lockdowns and increasing inflation, 2021 has been a fantastic investment year on several fronts. Especially unlisted equity, which we invest in through funds, has delivered really high returns. But also assets listed on the stock market and infrastructure funds have created attractive returns. Moreover, we have benefitted nicely from our inflation hedging in 2021," says Laila Mortensen, CEO of Industriens Pension, in a press release.
Members with the longest wait to retirement have received a return of around 23 percent, while members 60 years of age have gotten a return of 15.8 percent.
In a comparison conducted by independent investment advisor Nikolaj Holdt Mikkelsen, Industriens Pension landed on second place when comparing life cycle products with moderate risks and 15 years to retirement.
From unlisted equity, Industriens Pension can write down a return of 66.1 percent. For Danish and internationally listed equity, returns come to 20.6 and 18.4 percent, respectively.
The pension firm highlights that it has delivered an average annual return of 8.5 percent across all age groups over the past ten years.
"Those are the long-term results that are the most important for us. That's why I'm delighted by our long-term figures, which are a testament that our strategy has proven its worth throughout many years," Mortensen says.
Going forward, Mortensen is confident that the pension firm can continue to perform on the same level.
"I think all investors have to prepare for more fluctuating returns than they are used to in the coming years. But pensions are long-term savings, and with our investments divided across many asset classes, we will continue to be prepared on the long term," Mortensen says.
(This article was provided by our sister media, FinansWatch.dk)
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