AMWatch

ATP reviews EUR 120bn investment portfolio as negative interest rates bite

The biggest pension fund in the Nordic region is working on a plan to rejig its EUR 120bn portfolio to help it cope with long-term negative interest rates.

Photo: Thomas Borberg

ATP, which is based north of Copenhagen, says its review will be “comprehensive.” There are “big decisions” ahead, Chief Executive Officer Bo Foged said in an interview. Measures may include shifting the basic allocation model at the fund to allow it to offload bonds and add risk.

ATP is trying to run a pension fund in a country that’s had negative rates longer than any other place on Earth. Denmark’s central bank first dipped below zero in 2012. Two years later the European Central Bank followed. The regime is great for borrowers, but punitive for those trying to build enough savings to retire on.

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

PFA says three big changes will bring better returns

To get returns on the same level as other pension firms, PFA has made three big changes to its portfolio, including taking on more risk, says the firm, which doesn't fear a backlash from this year's predicted unsteady market.

Further reading

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch