Denmark’s largest pension fund, PFA, said tactical portfolio adjustments it made before and just as the war broke out in the Middle East succeeded in mitigating investment losses for its customers in the first quarter, with major stock markets having taken a dive in March.
The DKK883bn (€118bn) pension provider said on Friday: “The return to PFA’s customers in the first quarter was affected by the conflict in Iran, which sent oil prices and interest rates soaring and pushed down stock and bond prices.”
The January-to-March return for a typical customer with a medium-risk profile had been a loss of 2.2%, PFA said, but added that since the end of March, the year-to-date return had recovered in the wake of the temporary ceasefire.
However, Rasmus Bessing, head of sustainability and investments at the Copenhagen-based institution, said PFA had taken action to protect the portfolio.
He told IPE: “We have, and have had, a slight underweight, especially towards US stocks since the start of the war.”
“In addition, we tightened our dollar hedging ahead of the war in the Middle East,” he said, adding that both measures had contributed positively to clients’ returns.
In a video on PFA’s website, Bessing also said: “In a turbulent period such as this one, our broad portfolio had proven its worth.”
“Among other things, our investments outside the stock market, for example in infrastructure and real estate, have contributed positively and helped stabilise the return,” he explained.
Meanwhile, the Danish pension fund for teachers, Lærernes Pension, said in a commentary mainly on its 2025 full-year results, that returns for the current year to date were in the black.
“2026 has so far seen major market declines all over the world, which is feeling the effects of the war in Iran, but Lærernes Pension has managed to navigate sensibly through the turmoil, and has therefore got off to a good start with a positive return,” the DKK190bn pension fund stated.
Sampension, which manages DKK306bn of occupational pension savings, said yesterday that “good returns” in January and February had been followed by a plunge in March due to the war between the US and Iran.
The provider said customers with 15 to retirement and a moderate investment profile suffered a 1.5% loss in the first quarter.
Jesper Nørgaard, deputy chief investment officer, said in the commentary published shortly after Sunday’s news that the Pakistan-brokered peace talks failed: “Over the past few years, we have seen how quickly the markets correct themselves, and how important it is not to act in a panic.”
“So the situation in the US and the Middle East doesn’t give us reason to change our investment strategy. But as always, we are following the situation closely – not least in relation to interest rate levels and inflation,” Nørgaard said.
