DENMARK - The Danish labour market pension fund, PensionDanmark, has booked an investment return of 1.2% in the first quarter - boosting its assets under management to DKK64.2bn (€8.6bn).

Despite continued meagre returns on its index-linked bonds allocation, which decreased from 11.2% in the last quarter of 2006 to 9.6%, the entire returns were two basis points above benchmark.

Equity, nearly 40% of all assets under management, returned 2.5%, with private equity (3.4%) performing particularly well, yielding 3.7%.

Real estate, 6.4% of the entire assets, returned 3.3% in the first quarter and investments in nominal bonds returned 1.0%.

Chief executive Torben Möger Pedersen commented in a statement today: "The positive growth path continued in the first quarter of 2007. The increase in premiums reflects higher employment and wage increases as well as higher contribution rates."

The fund also announced it paid DKK0.4bn (€54m) in benefits to its members in connection with old age pension, disability and critical illness or as payment to beneficiaries that in the first quarter. It levels with the benefit payments in same period of 2006.
 
The fund's total consolidation stood at 21.4% at the end of the period.

"Combined with a result of DKK0.5bn (€67m) for the first quarter this gives a solid foundation for maintaining the preliminary account dividend of 6.0% for 2007," the fund said.

It added: "For the period 2003-2007 PensionDanmark has given an accumulated account dividend of 29.4%."

The half-year report is expected to be published on August 30, the fund said.