Danish labour-market pension fund Lærernes Pension said it made an 11.3% return on investments last year but warned that its assets were unlikely to be as profitable this current year.

Reporting preliminary return figures just days after the close of the year, the DKK70bn (€9.4bn) pension fund for teachers said emerging market investments in particular boosted the 2016 result.

The pension fund said: “There have been gains in virtually all investment sectors, but particularly emerging markets stood out, with a high equities return.”

The fund also said its asset managers did better in this sector than the market in general.

Lærernes said it had a solid level of reserves and was easily able to manage the Danish FSA’s various stress tests, which made it possible to take more risk with investments and therefore get higher returns.

“The investment strategy for the next few years involves the company continuing to be able to invest in sectors where it is possible to make a good profit,” the pension fund said.

Before Christmas, the pension fund set an account dividend of 5.61% for 2017, it said, adding that costs had been lowered again and now amounted to 1.25% of contributions.

But it warned of lower returns this year.

“We don’t expect to get the same high level of return in 2017,” it said, “so the return from 2016 will help to ensure that the teachers are able to have a good account dividend in the next few years as well.”