DENMARK - Pensioners are set to receive higher payments as ATP saw a DKK11.4bn (US$2.1bn) profit in the first three quarters of 2007, despite recent market turbulence.
The fund’s portfolio, which was separated into alpha and beta teams, produced a 5.3% return, worth DKK19.3bn (US$3.7bn) which was mainly driven by domestic equities which made 18.3%.
Lars Rohde, CEO at ATP, commented: “From an investment standpoint, 2007 has been quite a turbulent year. Our financial results are, however, very satisfactory.”
Fixed income, which made up 56.8% of the portfolio performed poorly with an overall return of 1.8%.
Commodities, did better, producing a 12.9% return in the first three quarters of 2007.
As a result of the income, the fund announced all pensioners would receive a 2% increase on their payments, beginning 1 January, 2008.
ATP The largest Danish pension fund had posted bumper Q1 investment returns of DKK5.4bn (US$985m) before tax.
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