Stockholm (HedgeNordic) – P+ Pensionskassen for Akademikere enjoyed strong investment performance for the second consecutive year in 2024, benefiting members across its pension schemes. Most members in lifecycle-based schemes, P+ Livscyklus and P+ Bæredygtig, enjoyed double-digit returns, while those in the average interest rate scheme achieved a return of 9.4 percent. Although equities contributed the most to overall returns due to their significant portfolio weighting, P+’s hedge fund investments – particularly Danish hedge funds specializing in mortgage bonds – stood out as the top-performing asset class, delivering an absolute return of nearly 15 percent.
“Although 2024 was marked by several political and geopolitical events, the markets were relatively unaffected throughout the year,” reflects Jasper Riis, Chief Investment Officer at P+. “Despite some fluctuations, we recorded positive returns in nine of the 12 months last year, making 2024 a good investment year,” adds Riis, who stepped into the CIO role in mid-2023, several months after joining P+ from Danske Bank Asset Management.
In 2024, financial market developments were largely driven by publicly listed equities, which, as in 2023, posted exceptionally high returns. The equities within P+’s portfolio delivered a return of 14.8 percent, primarily fueled by strong performances from major U.S. technology companies. Despite equities’ dominant contribution, other asset classes also played a positive role in driving overall returns.
“It is also encouraging that several of our asset classes contributed to the year’s overall performance. For instance, we achieved a return of nearly 15 percent in our hedge funds, while our investments in Danish equities generated a return just above 9 percent.”
Jasper Riis, Chief Investment Officer at P+.
“We have an equity investment strategy that focuses on exposure to U.S. equities in particular, and this paid off in 2024, with equities delivering returns far higher than one might expect over a longer time horizon,” says Jasper Riis. “It is also encouraging that several of our asset classes contributed to the year’s overall performance. For instance, we achieved a return of nearly 15 percent in our hedge funds, while our investments in Danish equities generated a return just above 9 percent.” On the other hand, unlisted and illiquid asset classes, including real estate, infrastructure, and private equity, did not perform as strongly in 2024. However, these same asset classes have historically delivered solid results, highlighting the value of P+’s diversified portfolio.
The “special investments” segment of the P+ Balance pension scheme, where the majority of the pension fund’s members have their savings invested, generated a return of 15 percent in 2024, following an 11.5 percent return in 2023. This segment includes investments in several Danish hedge funds specializing in mortgage bonds, as outlined in recent annual and social responsibility reports. The hedge funds in this segment include Danske Invest Hedge Fixed Income Strategies, Asgard Fixed Income Risk Premia, and Nordea European Rates Opportunity Fund. While this segment delivered a strong absolute return in 2024, it represented just 3.4 percent of the total P+ Balance portfolio at the end of 2023, making a smaller contribution to the pension scheme’s overall 9.4 percent return for the year.
All three funds delivered returns ranging from 13.7 percent to 18.8 percent in 2024. Nordea Asset Management’s European-focused relative value fixed-income hedge fund, Nordea European Rates Opportunity Fund, achieved a return of 18.8 percent in 2024. Danske Invest Fixed Income Strategies Fund, which became the tenth Nordic hedge fund to surpass a 20-year track record at the start of this year, returned 13.7 percent last year following a 21.3 percent in 2023. Asgard Fixed Income Risk Premia, on the other hand, closed 2024 with a return of 17.1 percent, following a similar performance of 21.3 percent in 2023. Both Asgard Fixed Income Risk Premia and Danske Invest Hedge Fixed Income Strategies are among the several funds in the Nordic hedge fund industry managing over €1 billion in assets.
