DENMARK - PensionDanmark posted a 12.6% pre-tax investment profit for the first nine months of the year and said the result has grown further since the end of the reporting period to 13.8%.

In absolute terms, the fund made a DKK11.1bn (€1.5bn) profit on investments before tax, compared with DKK8.4bn in the first nine months of 2009, which equated to 11.4%.

Contributions, however, dropped as a result of dwindling job numbers in the construction and transport sectors, the fund said.

PensionDanmark is the biggest labour-market pension provider in Denmark, covering several industries in both public and private sectors.

Torben Möger Pedersen, managing director, said: "The high return on investments in both 2009 and in 2010 so far has been added in full to members' accounts.

"Members have thus received a yield of 25% after tax on their pension savings in these two years, which we are, of course, very satisfied with."

Total pension contributions for the first three quarters of the year were DKK7.4bn.

In comparison with the same period in 2009, there has been a fall of DKK0.2bn, which the fund attributed to lower employment within the construction and transport sectors.

Payments in relation to old-age pension, early retirement, critical illness and death benefits rose DKK0.2bn to DKK1.3bn compared with DKK1.5bn in the same period in 2009, which was due in particular to rises in monthly pensions, PensionDanmark said.

Total assets passed the DKK100bn mark in August and stood at DKK104.5bn at the end of September, compared with DKK84.1bn 12 months earlier.

The fund added that assets under management were expected to rise to DKK110bn by the end of the year.

Administration costs rose slightly to 2.4% of contributions compared with 2.1%.