The value of the guaranteed pensions fell steeply due to the interest rate increases during this period, but this was hedged in the hedging portfolio. Hedging allows ATP to ensure that members receive the pensions promised, regardless of whether interest rates rise or fall.ĭespite the negative investment result, the basic security remains and there is no doubt about ATP’s ability to handle the future payments for all our members. Since 2012, ATP has generated returns of DKK 185bn in its investment portfolio.ĪTP protects the pension guarantees for members by hedging the interest rate risk. ATP will maintain its disciplined approach to risk management to create the best possible returns while simultaneously ensuring that ATP is always able to meet its guarantees to its members. Even though the investment return has been negative this year, ATP’s average returns are still over 10 per cent over the past five years and ATP still has a healthy balance between the size of our guarantees and our reserves in the so-called bonus potential,” says Martin Præstegaard, CEO (Chief Executive Officer) of ATP.įor the remainder of the year, it is expected that the financial markets will still be characterised by a great deal of uncertainty. “It has been an unusually difficult H1, but our business model ensures that the pensions for our members remain unchanged despite the turbulent developments in the financial markets in 2022.
The largest positive contributions came from the holdings of inflation-related instruments, which generated returns of DKK 10.7bn. The largest negative contributions were from investments in government and mortgage bonds which had negative returns of DKK -48.4bn and from listed equities which had negative returns of DKK -20.4bn. In H1, the investment portfolio generated returns (before expenses and tax) of DKK -57.6bn, and after expenses this is equivalent to -36.4 per cent in returns in relation to the bonus potential. The result is mainly attributed to a large negative return in the investment portfolio which is due to the general market developments with falling equity markets and rising interest rates. In H1 2022, the ATP Group saw a negative result of DKK 51.0bn.
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