Annual Report
As the dust settles after the past two years’ financial crisis, 2010 posed new challenges. DIP ended the year with an overall return of 9.9 % which is considered satisfactory. The result is positive compared to DIP’s expectations for the year.
Throughout the year DIP maintained a balanced investment profile with equities, bonds, credit bonds as well as real estate which proved to be a reasonable decision. DIP’s active investment strategy not only contributed positively, it also affected the result negatively.
Due to the fall in interest rates during the first six months of 2010, DIP achieved handsome returns on bonds and credit bonds, but the pension fund was also affected by investments in European government bonds with the crisis in Greece and Ireland. During autumn the long-term interest rates rose, while the equities followed suit at the end of the year.