Working Group Recommends ATP Pension Fund Review Investment Risks

A working group has advised the Danish state pension fund ATP to reassess the risks within its investment portfolio. The group, led by former director of the Danish Financial Supervisory Authority, Jesper Berg, presented its findings on Wednesday morning.

One of the key recommendations is that ATP should generally consider the level of risk it undertakes. Additionally, the group suggested that the pension fund examine the volume of its so-called illiquid investments. Illiquid investments are characterized by their difficulty to sell quickly, making them less accessible if immediate cash is needed. Examples include investments in real estate.

ATP, which is a mandatory pension fund for all salaried employees in Denmark, launched an independent evaluation of its investment strategy at the beginning of 2025. This review was prompted by previous criticism directed at the pension fund's investment practices.

The recommendations aim to ensure the long-term stability and responsible management of ATP's substantial assets, considering both market volatility and the nature of its investment commitments.