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Huge returns raise risk alarm at EUR 208bn funds in Denmark

he two biggest funds in the world’s top performing pension market just delivered some of their best returns ever. But their results may be a cause for concern.
Allan Polack, the chief executive officer of Copenhagen-based PFA, says that the “diversification models that we have all been working with -- you can question the degree to which they actually work, because this year, bonds and equities have moved in the same direction.” | Photo: Niels Hougaard/ERH
Allan Polack, the chief executive officer of Copenhagen-based PFA, says that the “diversification models that we have all been working with -- you can question the degree to which they actually work, because this year, bonds and equities have moved in the same direction.” | Photo: Niels Hougaard/ERH
BY FRANCES SCHWRTZKOPFF / BLOOMBERG

Part of the reason they did so well was that virtually all asset classes in their portfolios rose in value in the first half of the year.

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