Sections

PKA reports 6.3% loss

Related images

  • PKA reports 6.3% loss

Related Categories

DENMARK - PKA generated an overall return of -6.3% for its eight pension funds in 2008 as equity results offset positive fixed income performance.

Figures from the occupational pension fund administrator showed the average return for the eight schemes, which have 90% female members, on pure investment assets - such as equities, bonds and property but excluding interest rate hedging - was -13.9%.

That said, within the eight pension schemes total returns for 2008 ranged from a positive 6.9% in the social workers' pension fund, to a less pleasing -11.1% for the office staff pension scheme.

Meanwhile, the midwives fund and the diet and nutrition officers scheme both produced positive results of 0.1% and 0.2% respectively, although this was offset by a -10.4% result from the medical secretaries scheme.

At the same time, the occupational therapists and physiotherapists fund yielded -5.8%, the laboratory technicians returned -8% and the scheme for registered state nurses produced -9.3%.

Bonds performed well across all the schemes with returns varying between 4.9% and 5.1%, as interest rates fell around the world, however the pension fund's returns on listed equities ranged from -44.1% and -44.7%.

Large losses of over 50% were recorded on Danish equity investments and over 40% on global equities, although the reports noted that while all regions were hit, emerging markets were severely affected.

PKA said the results were dominated by the financial crisis, however it said total premium income increased to DKK4.3bn (€582m), while despite paying benefits of DKK2.9bn to 30,000 pensioners the organisation revealed costs of administration declined to around DKK400 per member.

Peter Damgaard Jensen, chief executive at PKA, acknowledged 2008 was a difficult year, but said the firm was satisfied the eight pension funds are able to continue with their "broad and long-term strategies".

If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email nyree.stewart@ipe.com

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • DS-2486

    Closing date: 2018-11-16.

  • DS-2487

    Closing date: 2018-11-22.

  • QN-2489

    Asset class: Alternatives.
    Asset region: Global.
    Size: $100m.
    Closing date: 2018-11-30.

  • QN-2491

    Asset class: Alternatives.
    Asset region: Global.
    Size: $20m.
    Closing date: 2018-11-30.

Begin Your Search Here