ATP posted a negative investment result in the third quarter, pulling its return for the year down to 1.5 percent, the Danish pension company said in a press release on its website, according to Ekstra Bladet, Berlingske and borsen.dk.
The loss wiped out most of the year's gains. At the half-year report a few months ago, ATP's investment return stood at 14.5 percent. ATP didn't disclose the size of the third-quarter decline on its own.
"We've had a challenging third quarter, where rising interest rates have affected the result negatively," said Martin Præstegaard, chief executive of ATP.
"It comes after a first half where ATP delivered a decent return, so overall we've delivered a positive return for the first nine months of the year," he said. "The interest rate fluctuations don't change the fact that pensioners can count on receiving the pension they're guaranteed, and a robust bonus potential gives us the opportunity to raise pensions for all members."
ATP's bonus potential stood at 119 billion Danish kroner at the end of the third quarter, 14 billion kroner below the half-year level of 133.2 billion kroner.
ATP is a statutory pension scheme that all wage earners with a minimum of nine hours of work and their employers pay into. Recipients of transfer income are also members, and about 5.8 million people are covered by the scheme. It provides a lifelong, guaranteed monthly payment on top of the state pension once people stop working.
The investment portfolio makes up around 20 percent of total assets.