Danish equities drive first-quarter return of 6% at pension fund LD
Denmark’s Lønmodtagernes Dyrtidsfond (LD) has reported a 6% return on investments in its key LD Vælger portfolio in the first three months of this year, with Danish equities in particular driving returns.
LD, which manages a non-contributory pension scheme for Danish people that is based on cost-of-living allowances for workers granted in 1980, said its Danish shares investment pool produced a return of 25.8% in the first quarter.
The pension fund said: “Danish equities gave big positive contribution, but, in general, there have been positive results coming from all major investment segments.”
The return on Danish shares in the period was more than double those produced by the LD Global Equities and LD Environment and Climate pools.
The latter pool returned 10.1% in the quarter, while the global equities pool produced 11.1%, according to the results released.
Meanwhile, the mixed bonds pool returned 1.9% in the period.
The 6% return on LD Vælger in the first quarter of this year compares with the 8.7% return reported for the full year 2014.
The balanced unit-link investment option LD Vælger (LD Discretionary Investments) holds around 91% of LD’s pension assets.
Members of the LD scheme have the option of investing their savings in 10 different investment pools, rather than going with LD Vælger.
Both LD Vælger and the externally run pools with blended portfolios containing both equities and bonds have produced returns of between 6% and 9.6% between January and March, LD said.
At the end of 2014, LD managed DKK54.6bn (€7.3bn) of assets.