mast image

Special Report

Impact investing

Sections

Denmark’s PKA puts performance down to equities

DENMARK - Danish industry-wide pension fund PKA group has reported that the eight pension funds within the group achieved a 2004 pre-tax return of between 13.6% and 15.0%.

It put the good performance down to its holdings of Danish equities.

“The result compared with the 2003 outturn of 8.5%,” said chief investment officer Michael Nelleman Pedersen. “I think that our performance is in the top five for the sector as a whole.”

The pension funds within the PKA group cater for technologists, nurses, hospital catering workers and other medical sector employees. The highest returns, of 15%, were posted by the pension funds for midwives, social workers and state registered nurses and the lowest, 13.6%, by the pension fund for therapists and physiotherapists.

“Our good performance is due to our weighting of Danish equities,” said Pedersen. “And we had a very effective interest hedge against our liability side.”

“The average portfolio for the eight pension funds managed by PKA is equities 30%, real estate 8-9%, interest hedge 4-5%, index bonds 8-10% and high-yield and emerging market debt 5%. The rest is fixed income,” Pedersen said.

Elsewhere, engineering scheme DIP, Danske civil- og akademiingeniorers Pensionskasse, posted a 2004 return of 9.3% after tax.

Listed Danish equities returned 29.4% - against a 22.9% benchmark. Foreign equities were up 10.8% versus a 3.6% benchmark.

But Danish bonds – 37% of total allocation – missed the target. They rose 7.0% against a 7.45% benchmark. Total assets at DIP have risen to DKK22.6bn (E3bn).

Meanwhile, Lønmodtagerns Dyrtidsfond, LD Pensions, returned 13.7% last year.

LD Pensions is facing change this year. In March 2004, the Danish parliament adopted a new act authorising LD Pensions to manage capital for other pension institutions.

It says it has “launched measures to capitalise on its asset management competencies, and efforts are being made to render investments more liquid”.

It named Jeppe Christiansen as managing director last May.

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.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<