Return on investments

Monthly report for August 2023

The YTD return of P+ Balance accounted for 7.5 percent on 31 August which is a fall of 1.0 percentage point compared to the end of July.

The month’s portfolio returns accounted for -2.2 percent for shares, -0.3 percent for credit bonds, -1.0 percent for real assets, 2.0 percent for special investments and 0.1 percent for bonds. 

In August, focus still pointed towards inflation and interest rate developments as well as the Fed's annual Jackson Hole Economic Symposium. The negative market development in August was jump-started by news which surprised the market. Firstly, the American Department of Treasury announced the need for issuing additional government debt, and secondly the credit rating agency Fitch downgraded the US credit rating from 'AAA' to 'AA+'. These news led to further US interest rate hikes which affected the risky assets adversely. The inflation rate in the Eurozone was a little higher than market expectations, and the market now waits on the US inflation rates prior to the coming central bank meetings in September. The monthly key economic indicators, which i.a. serve as a measurement of the interaction between services and manufactoring, were lower than expected in both the US and the Eurozone. This caused concern for the economic growth, especially in the Eurozone, and contributed to pressuring the interest rates down at the end of the month. There was much focus on the Jackson Hole Economic Symposium, but as there were no noticeable announcements it did not affect the market.

On the upcoming central bank meetings, the market expects that the ECB will increase the interest rate once more, however it is uncertain if they will do it at the meeting in September or later. It is more uncertain if the Fed has announced their last interest rate increase, and the expectations to the meeting in September is that they maintain the interest rate. 

In the months to come, the market will continue focusing on both the economic development and the development in inflation as both determine the future of interest rates. There has for some time been media speculation about a potential recession, and the coming key economic indicators seem to be of vital importance to whether it will be a reality. Finally, a further decline in inflation is crucial to whether the central banks have manoeuvering room to lower the interest rate to support a potential weakened economy. 

 

 

 

 

*Return for a member with 15 years to retirement.

The returns are updated monthly on the 13th banking day at the latest.

Return on investments end August

Return on investment profiles end August

 

Return on asset classes

You can find information about the composition of the assets in the different savings products here

Historical returns

In below table you can see the last 5 years' return on the different savings products. P+ Life cycle was introduced in November 2021, and the return only covers the last 2 months of 2021.

 

Returns compared with other pension companies

The overview is based on 2020 figures which are the most recent data. In the comparison the companies are grouped in relevant segments.