Industriens gains lift from equity exposure
DENMARK - Industriens Pension, the Danish pension fund, generated an investment return of 16% in the first eight months of this year, with the growth largely won on the back of its increasing exposure to equities.
The DKK62bn (€8.32bn) pension fund, which covers employees in the country's industrial sector, has been bullish on equities since early this year, and doubled the asset class, boosting its allocation to around 34% in September from 17% in February.
Industriens has beaten its benchmark by three percentage points thanks to the 16% return, explained Henrik Poulsen, head of equities at the pension fund. Back at the half-year stage, the pension fund reported an 11.1% investment return.
"We have increased our equities exposure significantly over the year, starting by buying into them in February," he told IPE. "Most of the equities were bought prior to the stock market rally in May, June and July. If you look at regions, we are significantly overweight in emerging markets and Denmark, and emerging markets has done particularly well."
Looking ahead, Poulsen said fund officials believe the market may have rallied a little too quickly, though in the short-term they are comfortable with their position.
At the end of August, Industriens' asset allocation was 32% equities, 47% mortgage and government bonds, 16% fixed income credit and around 5% in alternatives including private equity.
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