One in four (25 per cent) Danish pension kroner is invested in the US so the outcome of the presidential election could have a “major impact” on Danes’ pension savings, according to Insurance and Pension Denmark (I&P Denmark).

Danish pension investments in the US have overtaken Europe and now stand at DKK 1,167bn – compared to DKK 855bn placed in the EU excluding Denmark.

Commenting, I&P Denmark CEO, Kent Damsgaard, said: “Danish pension companies' interest in investments in the US has increased steadily over the past decade. And with Joe Biden's adoption of the 'Inflation Reduction Act', which gave further impetus to investments in wind turbines, solar, hydrogen and infrastructure, there has been further momentum.”

The analysis also shows that employment and GDP have generally grown more in the US than in Europe since 2010, and US investments have yielded good returns, which is crucial for investors' interest in the US market.

“Although the US market was hit hard during the coronavirus pandemic, the US was quicker to recover afterwards than the European market. The United States is currently the world's growth engine and attracts investment from all over the world. There has been a fierce focus on attracting green energy investments. The big question is, of course, what the framework for investments looks like after the election in November,” he said.

The Republican candidate Donald Trump has several times promised his voters to abolish the 'Inflation Reduction Act', but American investors seem to have embraced the green initiative.

“It is clear that we as an industry are following very closely the signals coming from the two presidential candidates for the framework in the United States. But the figures also show how important it is to strengthen European competitiveness and growth again,” Damsgaard concluded.

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