Stockholm (HedgeNordic) – P+ Pensionskassen for Akademikere enjoyed a notable rebound in 2023 after a challenging 2022. This resurgence extended to the “special investments” portfolio of P+, which includes the occupational pension fund’s hedge fund investments. This part of the portfolio secured the third-best performance among the main asset allocation segments, ranking just behind global equities and private equity.
The “special investments” segment of the portfolio delivered a return of 11.5 percent for P+ Balance, where the majority of the pension fund’s members have their savings invested. This portfolio bucket includes investments in several Danish hedge funds specializing in mortgage bonds, according to recent annual reports and reports on social responsibility. P+’s “special investments” portfolio recovered from a negative 7.5 percent return in 2022, attributed to challenges faced in the Danish mortgage market.
Within this portfolio segment, P+ invested in hedge funds such as Danske Invest Hedge Fixed Income Strategies and Asgard Fixed Income Risk Premia. Both secured positions among the top ten best-performing hedge funds in the Nordics, each with a similar 21.3 percent return in 2023. These Danish fixed-income hedge funds recovered from declines of 9.4 percent and 8.0 percent in 2022, respectively. Another constituent of the portfolio, the Nordea European Rates Opportunity Fund, concluded 2023 with a flat return of 0.2 percent after delivering a 10.2 percent return in 2022.
In 2023, P+ witnessed an exceptionally fruitful investment year, with P+ Balance realizing a return of 13.2 percent. This positive outcome can be attributed, in no small part, to P+’s strategic decision to adhere to its investment strategy of being exposed to equities despite the financial tumult of 2022. “We have kept the long light on and maintained our strategy. As a result, approximately 70 percent of our exposure has been directed towards U.S. stocks,” says Jasper Riis, chief investment officer at P+. ”Although there are variations in the American market, the asset class has proven to be an overall positive allocation with a return of around 18 percent in 2023.”
“Our credit bonds and special investments yielded excellent returns of 9.9 percent and 11.6 percent, respectively, while real assets generated 5.4 percent.”Jasper Riis
Other segments of the portfolio also contributed to returns in 2023. “Our credit bonds and special investments yielded excellent returns of 9.9 percent and 11.6 percent, respectively, while real assets generated 5.4 percent,” says Riis, who assumed the role of CIO in mid-2023, several months after joining P+ from Danske Bank Asset Management. Before joining P+, he led the Quant and Overlay team responsible for managing Danske Bank’s quantitative-based equity strategies, equity and derivatives-based hedge fund strategies, and equity index products. “Bonds contributed a return of 5.2 percent, marking a significant improvement compared to the previous year.”
P+’s sustainable savings product, P+ Sustainable (P+ Bæredygtig), delivered the highest return of 18 percent in 2023 among market-rate pension products in Denmark. The product’s allocation to hedge funds and special investments returned 17.5 percent in 2023, trailing behind the 21.4 percent return for global stocks and the 18.4 percent return for private equity investments. This sustainable savings product accounted for DKK 2.06 billion of P+’s total assets under management of DKK 156.7 billion.