Danish pension insurance company, Velliv, has reported strong performance across its investment portfolios, with typical customers achieving returns of between 4.9% and 6.4% by the end of September, despite ongoing market uncertainty.
According to the provider, the positive performance reflected gains across equity and bond markets, fuelled in part by expectations of interest rate cuts in the US.
The returns marked a slight improvement from last month's update, which reported returns of up to 6.3%.
Velliv said its “active investment decisions”, such as hedging against a weakening dollar and positioning for monetary easing, had contributed to “the good end of the market” for its customers.
Chief investment officer, Lea Vaisalo, added that the results, based on a typical customer profile with medium risk exposure and 15 years to retirement, demonstrated the strength of the company’s updated investment strategy, introduced in summer 2024.
“In a period of both ups and downs in financial markets, our new approach has delivered solid top-quartile returns for customers," she argued.
"It underlines that the new strategy has the robustness we were aiming for”.
The update comes amid continuing turbulence in global markets, with developments in the US, Europe and China driving short-term fluctuations.
However, Velliv said recent declines had been more than offset by subsequent recoveries, with the firm expecting the positive momentum to continue through to year-end, albeit with some volatility along the way.
The provider noted that growth prospects remained “attractive”, supported by stabilising inflation expectations and improved global sentiment.