DENMARK - Investments at commercial pension provider AP Pension made an overall return of around 10% in 2010, the company said.

But it said it foresaw serious risks for performance lying ahead in 2011.

Erik Hallarth, head of investment, said: "AP Pension's investments have had it good in 2010. We are emerging from the year with an overall return of around 10%, and that is a good result.

"We have made particularly good gains from our equities and our alternative investments. Interest rates rose in the fourth quarter, but, seen over the whole year, they fell."

This dynamic meant the pension fund made gains through its interest-rate hedging activities, he added.

Looking ahead to 2011, Hallarth said he thought it would be a steady year, but with growth and price rises among equities.

"I expect emerging markets to have a good year, too," he said. "But long-term yields will continue to rise, and that will put a damper on the profits one can expect."

One potential problem lurking in the outlook for 2011, he warned, is the turbulence emanating from the fragile economies both within and outside Europe.

"2010 produced a good result, and I expect another good result in 2011," Hallarth said. "But we could be risking steep falls in prices if the political and economic will to support the weak economies does not continue."

In 2009, AP Pension made a pre-tax return of 8.3%.