DENMARK - PensionDanmark has yielded a return of €480m in 2006, equivalent to 7% before taxes and investment costs.
The rate of return beat the benchmark by 3%.
The high returns posted for fund’s investment in equity, private equity and real estate largely contributed to the overall positive yield.
PensionDanmark’s 35% allocation to equity posted a 15.6% return, while return on private equity investment was 14.1%. The fund’s real estate portfolio registered a return of 15.7%.
The €8.3bn fund’s CIO Claus Stampe said: “The higher than benchmark return can be attributed to our external equity managers that generally outperformed the market. Also the internal management of nominal bonds yielded a higher than market return.”
PensionDanmark CEO Torben Möger Pedersen added: “More than half of PensionDanmark’s investments are in equity, private equity, high yield bonds, real estate and alternative assets like hedge funds, infrastructure funds and senior bank debt. This has significantly contributed to the solid investment return in a year when investments in Danish nominal bonds have yielded an only very modest return.”
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