26 January 2021
After a dramatic year in the financial markets with unusually large fluctuations along the way, Industriens Pension delivered a return of DKK 9.7 billion. DKK, corresponding to 5.1 percent for the total portfolio.
Several asset classes have yielded solid returns, but it is especially listed equities that have pulled up in 2020. Both equities and several other asset classes fell sharply in March, as COVID-19 spread around the world, but the financial markets recovered faster than feared, i.a. due to help from central banks, major fiscal assistance packages and the prospect of effective vaccines.
“It has been a very unusual and turbulent year, but it ended with sensible returns for all age groups. We have received very good returns from both Danish and foreign equities, while several of the unlisted asset classes have had a more difficult year as a result of the corona pandemic, ”says CEO of Industriens Pension, Laila Mortensen.
Industriens Pension received a return on listed shares in 2020 of 14.3 percent. Here, it was especially Danish and American equities that pulled up sharply, while the large European stock markets, on the other hand, have had a harder time recovering from the market turmoil in the spring.
Among the unlisted asset classes, the corona crisis resulted in a difficult year for infrastructure and foreign real estate, while unlisted stocks ended up with nice pluses after gains at the end of the year.
Over the past 10 years (2011-2020), Industriens Pension has achieved an average annual return of 7.3 percent for the total portfolio across all age groups. It is among the absolute highest returns in the industry.
In the very long run, the figures also testify to great stability and sustained good results in very different market situations. Since Industriens Pension as the newly established company received the first payments in 1993, the average annual return on the total portfolio has been 8.7 percent over the 28-year period.
“We are proud of so many years of high returns across all age groups, and we will continue to optimize the portfolio in relation to the current market situation. At the same time, the corona crisis has not changed our expectations of continued reasonable returns in the long run, albeit at a lower level than we have been accustomed to for the past ten years, ”says Laila Mortensen.
The total investment assets in Industriens Pension now amount to DKK 199 billion. kr.Source: Industriens Pension
December 5, 2022
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