In particular, the year's investment return was positively affected by the rising equity markets, which resulted in a 20.4% return on investments in global equities. Investments in real estate and wind farms also provided good returns, yielding 7.0% and 9.1% respectively. On the negative side the portfolio of investment grad government and mortgages bonds was effected by the rise in long terms yields during 2013, and achieved a return of -1.3%.
"Our goal is to ensure that our members get attractive and stable returns on investments year after year. Equities gave the best return in 2013. Our investments in infrastructure and property form the stable base of our portfolio, where our aim is to achieve more stable and reliable returns than we can achieve in the more volatile equity markets. For five years in a row, we have now delivered positive returns averaging approximately 10% p.a. That's very satisfactory," says CEO Torben Möger Pedersen, PensionDanmark.
Over the coming 1-2 years PensionDanmark plan to increase total assets in infrastructure and real estate from 15 to 20 pct. of total asset. In recent years, the investments in infrastructure have already been expanded significantly, with new investments in wind farms, a biomass-fuelled power plant in the UK and gas infrastructure in the Netherlands. The real estate portfolio has added new investments, including Magasin in Copenhagen, the UN City, the headquarters of MT Højgaard and NCC and housing in Aarhus, Vejle and Copenhagen.
At the end of 2013, PensionDanmark had 642,000 members, which is an increase of almost 9,000 people compared to 2012. Member contributions amounted to DKK 10.7 billion in 2013, while disbursements totaled DKK 4.7 billion. Altogether, the balance grew by DKK 13 billion to DKK 152 billion at the end of 2013.
Read the Annual Report here.
