DENMARK – Pensionskassernes Administration, the third largest pension provider in Denmark, says its first-half return of 12.1% has taken its market value to more than DKK100bn (€13.3bn).

“By the end of June 2005 the total return of investments in PKA pension funds is at an average of 12.1%,” PKA said. “The total assets of the 200,000 members is now above DKK100bn.

“The development from 2004, where the return of investments was 14.1% has in many ways been prolonged here in the first half of 2005 – apart from the development around the main currencies,” said chief investment officer Michael Nellemann Pedersen.

“We have got the right mix in our portfolios. Despite the very low interest rate we have managed to keep the necessary freedom to develop the investments and risk management according to the long term strategy of the pension funds.”

PKA said it has an asset liability study focused on liability matching assets – which has given it the possibility of having a high proportion, for Danish pension funds at least, of equities in its portfolio.

It said equities contributed 13.0%, with Danish stocks coming in at 25.1%. Real estate contributed 11.6% and bonds (including liability matching assets) 11.9%.

Earlier this year PKA awarded Goldman Sachs Asset Management a $100m private equity brief and said it is only half way to its target allocation to the asset class.

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