Danish pension funds dip in april

Denmark’s pension funds saw a dip with a negative return of 90 billion kroner in April, influenced by poor stock performance where a substantial portion of pension funds are invested. However, the losses are mitigated by the preceding five months’ return of 386 billion kroner. Finance expert Brian Friis Helmer advises maintaining a long-term view on pension investments due to their capacity to withstand fluctuations. Stocks now comprise a larger portion of the Danish pension wealth than bonds, partly due to a rise in market-rate pensions and a substantial increase in the value of American stocks. Additionally, pension reserves continue to grow with consistent contributions, totaling 40.6 billion kroner in the first quarter, driven by high employment and rising wages. Despite losing 563 billion kroner in 2022, the funds recovered in 2023 with a 284 billion kroner increase, reaching over 4000 billion kroner at year-end.