08/02/2018
ATP publishes an exceptional annual return of nearly 30%
ATP achieved an exceptionally solid return of DKK 29.7bn in the investment portfolio before expenses and tax for the full year 2017, corresponding to 29.5 per cent relative to the bonus potential. Overall, ATP achieved a profit for the year of DKK 24.7bn before life expectancy update and increase in pensions. DKK 1bn was transferred to guarantees as a consequence of increased life expectancy. To this should be added an increase in pensions of DKK 6.4bn, equivalent to a 1 per cent increase in bonus for all members. Profit for the year thus came to DKK 17.3bn.“We achieved an exceptionally solid return in 2017 and generated the best investment return in many years. The strong performance is due to positive contributions from virtually all asset classes, which has made it possible to increase pensions for all members, while also being able to build up our bonus potential by DKK 17.3bn. So it’s been an excellent year for our members,” says ATP CEO Christian Hyldahl.The results were driven mainly by strong returns on equities as a result of price increases in global equity markets and moderate interest rate increases in Europe. Thus, private equity alone generated a return of DKK 5.3bn, listed international equities contributed DKK 4.9bn, while listed Danish equities posted a return of DKK 4.2bn. However, the growth was achieved broadly across the portfolio: Inflation-related financial instruments, credit, bonds, real estate and infrastructure contributed to the extraordinary investment return.At year-end 2017, ATP’s bonus potential, which is managed in the investment portfolio, stood at DKK 117.7bn.ATP’s Supervisory Board has adjusted the long-term performance target from 7 per cent to 11 per cent to underpin the objective of preserving the real value of pensions. In 2018, the performance target is equivalent to DKK 12.9bn. This is an absolute objective which is to be achieved in the long term, but which is not necessarily achieved each year.
