The ATP Group Annual Report 2012

Management's Review Business Model Risk Pension Hedging and investment Hedging Investment Administration Social Responsibility The ATP Group Financial StatementsInterest RatesDomestic and German government bonds made positive return contributionsBeta portfolio return on Interest RatesReturnPortfolio, year-end2012 2012 2011Asset type DKK million DKK billion DKK billionGlobal bonds 2,280.1 117.7 171.2Domestic mortgage bonds 300.7 6.9 10.4Total 2,580.7 124.6 181.6Development in overall return on Interest Rates Yield development for 10-year government bonds in 2012DKK millionPer cent3,0002,5002,0001,5001,0005000(500)(1,000)Q1 Q2 Q3 Q42.22.01.81.61.41.21.00.8Q1 Q2 Q3 Q4DenmarkGermanyThe Interest Rate risk class generated a return of DKK 2.6bnThis risk class is comprised of global bonds and domesticmortgage bonds. The positive return of this risk class wasdriven primarily by interest-rate developments, as yields ondomestic and German bonds, both short and long-dated,ended the year lower than they began.The portfolio of global bonds generated a return of DKK2.3bn. At the beginning of the year, this portfolio was investedmainly in 10-year domestic and German governmentbonds. During the year, part of the portfolio was reallocatedto domestic and German government bonds with a remainingmaturity of less than 10 years.The portfolio of domestic mortgage bonds yielded a returnof DKK 0.3bn. The positive return was also driven by fallinginterest rates.The ATP Group – Annual Report 201248