Huge Returns Raise Risk Alarm at $230 Billion Danish Funds
- Outperformance follows tandem moves in both stocks and bonds
- Denmark has consistently topped global pension market rankings
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The two biggest funds in the world’s top performing pension market just delivered some of their best returns ever. But their results may be a cause for concern.
Part of the reason they did so well was that virtually all asset classes in their portfolios rose in value in the first half of the year. At ATP and PFA, which oversee a combined $230 billion from their headquarters in Denmark, the worry is that the near lock-step movement of bonds and stocks will make it hard to limit losses through diversification, once markets turn.