DENMARK - ATP has announced plans to raise all pensions and pension commitments by 2%, despite recording a net loss of DKK7.3bn (US$1.44bn) in the first half of 2008.
After the net profit for the period, and the additional pension provision, ATP's reserves make up around 20% of its pension liabilities.
In H1 2008, ATP's equity portfolios generated a loss of 5.6%. In the same period, the market value of domestic equities fell by almost 15%, and European equities dropped by more than 20% on average.
ATP's portfolio of listed equities resulted in a total loss of 13.1% during the period. At the beginning of the year, ATP's portfolio of listed equities totalled DKK80.6bn. The portfolio was partly hedged against strong price falls by means of financial instruments, which yielded a profit of DKK5.3bn in the period.
At the end of the period, the exposure to European and US equities was almost zero due to the hedging measures. Consequently, the portfolio of European and US listed equities was sold simultaneously with the appurtenant financial instruments.
Lars Rohde, chief executive of ATP, said: "A loss is far from satisfactory. The main reason why we were able to contain the loss in the face of the adverse market development was the hedging of our equity portfolio by financial instruments.
"Not to mention that investments in oil-related securities paid off almost DKK 5bn."
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