ATP posts YTD return of DKK 12.3 per cent in the investment portfolio following a strong quarter
In the first three quarters of the year, the ATP Group posted a return in the investment portfolio of DKK 12.5bn, equivalent to 12.3 per cent return relative to ATP’s bonus potential.
The return was driven primarily by positive returns in private equity, fixed income, and credit, while ATP’s long-term hedging strategies against inflation increases detracted from the return. Seen separately, Q3 recorded an investment return of DKK 5.7bn, equivalent to 5.8 per cent relative to the bonus potential. The hedging portfolio protected the pension guarantees against the significant decline in interest rates in the first nine months of the year.
Facts about ATP
ATP is a mandatory pension scheme with 5,025,000 members. At the end of Q3 2016, 997,000 pensioners were receiving ATP Lifelong Pension. ATP paid out DKK 11.5bn in pension benefits in the first three quarters of the year. For 50 per cent of Danish old-age pensioners, ATP Lifelong Pension is their only source of pension income other than their state-funded old-age pension. The full ATP Lifelong Pension for a 65-year-old pensioner is DKK 23,900, equivalent to 33 per cent of the basic amount of the state-funded old-age pension.
Further information
