DENMARK – ATP, the Danish labour market supplementary pension scheme, made a DKK26bn (€3.5bn) return on its interest-rate hedging instruments in the first six months of 2005.

It contributed to an overall return of 14.5%, or DKK44.1bn before tax, in the period. The return in the prior year period was DKK11.3bn.

“All asset classes contributed positively to the result,” ATP, or Arbejdsmarkedets Tillaegspension, said in a statement.

“The interest-rate hedging instruments, in particular, had a significant impact on the result for the first six months with a return of DKK26bn.” In April ATP disclosed a DKK5.3bn return on interest-rate swaps in the first quarter.

The returns came is ATP – noting that Danes are getting older – has put aside and extra DKK 3.8bn for increased life expectancy.

ATP added that significantly lower interest rates had forced it to set aside an additional DKK32.1bn for guaranteed pensions – taking the total to DKK304bn.

The Special Pension Savings Scheme, SP, made an investment return of DKK3.6bn, or 8%. It had a profit of DKK2.2bn.

Earlier, PensionDanmark released what it termed a “very satisfying half year result”. It reported a surplus of DKK1.5m. The results were the first after the amalgamation of B&A Pension, HTS Pension and PKS Pension.