H1 was dominated by declining interest rates, both in the US and Europe, and by upticks in global equity markets. The hedging portfolio covered increasing guaranteed pensions and the investment portfolio realised a return of DKK 29.6bn before expenses and tax.

The first quarter of the year was dominated by declining interest rates, both in the US and Europe, and by upticks in global equity markets. The investment portfolio generated a return of DKK 20bn before costs and taxes, equivalent to a rate of return of 21.7 per cent relative to the bonus potential.

ATP recorded a negative return of DKK 3.7bn in the investment portfolio, equivalent to a negative 3.2 per cent of the bonus potential, which is not satisfactory. However, our balanced investment portfolio reduced the negative return. Government and mortgage bonds, in particular, and illiquid investments made positive contributions to returns, while listed international equities were the main detractors.

In H1, ATP achieved a return of DKK 4.1bn in the investment portfolio before tax and expenses, equivalent to 3.4 per cent relative to ATP’s free reserves – the bonus potential. Private equity investments, infrastructure investments and real estate investments were the primary drivers of the return, while investments in listed international equities were the main detractors from the return.

On the tail of several years of stable returns, the financial markets were marked by falling prices in the global stock markets and interest rate increases in the US. ATP’s investment portfolio lost DKK 1.1bn, equal to a return relative to ATP’s bonus potential of -1.0 per cent.