Two-thirds of Danes’ pension assets invested abroad

Two-thirds of Danish savers’ pension assets are invested abroad, according to Insurance and Pension Denmark.

Figures from the association show that this equates to more than DKK 2,000bn invested abroad with US equities (DKK 650bn) being a particular favourite asset.

Insurance and Pension Denmark head of analysis, Andreas Østergaard Nielsen, said: “Danish pension wealth is so enormous that it is absolutely necessary to look beyond the country's borders when the money is to be invested. The risk must necessarily be spread geographically to ensure robust returns. In the first quarter of 2021, investments abroad rounded DKK 2,000bn. DKK.”

Foreign investments by Danish pension savers are geographically spread around the world but it is stocks that are the most common option.

“There were really good returns to pick up on shares in the first quarter of this year. Global equities returned 7-8 per cent in the first quarter. This return makes Danes richer and has great significance for the Danish economy,” Østergaard Nielsen said.

Commenting on the popularity of the US, he said: “The USA is the world's largest stock market, so it is only natural that the insurance and pension industry invests around 25 per cent of all foreign investment in US equities.

"The industry actually has more American shares than Danish. But we also know that it is necessary to spread risk geographically so that the pension funds are invested in almost the whole world.”

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