Danish pension company Akademkir Pension has defended holding government bonds in countries that appear on the EU's blacklist of tax havens, following press criticism.

The rebuttal follows an article in Finans.dk, which reported that the pension fund's investments, made on behalf of more than 170,000 academics, must not "contribute to or be associated with tax fraud, tax evasion or aggressive tax planning". However, experts suggested the reality was different.

In response, the company said it wanted to be “clear” that it thinks tax evasion and aggressive tax planning “undermine society”.

However, it said that when it tries to combat this, it does so by influencing the companies that practice it.

It also argued that as a Danish pension company, it could not influence the states where tax evasion was possible. It argued that countries do not change their tax legislation according to whether Akademkir Pension has bought government bonds or not.

However, the fund suggested that as a shareholder, it can influence the companies it has invested in, as the fund can have direct access to the management, vote and give speeches at the general meetings.

Furthermore, the fund said it was “very transparent” on its website about the fact that its influence efforts are aimed at companies, not states, emphasising this was “important to understand”.

The company said it does exclude some states from its investments based on issues such as human rights violations but not because of tax laws.

Commenting on this, Akademkir Pension chairwoman, Jane Gleerup, said: "I am very proud of the recognition that our efforts to promote tax transparency at large companies have received in recent years. The premise is fundamentally misunderstood.

“After all, countries do not commit tax evasion. They facilitate that companies can do this, and therefore we as a pension fund must take action towards the companies where we can make a real difference, while the country problem can only be solved intergovernmentally.”

She said that on Akademkir Pension’s website, the fund has “directly” written that it cannot delimit its investments from the major social problem that tax haven countries pose. Countries such as the United States, Great Britain and Ireland are “among the worst in the world" but they are countries in which most pension funds have investments.

“We have put everything openly on the website, so it is in no way a revelation," she added.

The fund said that in principle, it could exclude smaller countries, but said it made no difference to the extent of tax evasion globally.

The company explained it seeks to influence corporations involved in tax evasion or aggressive tax planning through ownership engagement, divestment, or exclusion.

It also noted that, despite many states being excluded for human rights violations, some less-than-ideal states remain in its portfolio to ensure sufficient diversification and risk management for members’ pension savings.

Furthermore, the fund explained that Danish pension companies invest in emerging market debt to support developing countries’ growth while ensuring responsible investing through a United Nations-recognised accountability process.

Excluding 38 countries for human rights and climate concerns, Akademkir Pension are focused on influencing private companies involved in tax evasion while transparently balancing development support and ethical investment practices.

This is the second time Akademkir Pension has been criticised by the Danish press this year on its investment practices, as a Danish newspaper made several claims about the pension fund relating to its decision not to vote for the re-election of Maersk chairman and the fund’s sustainability activities and reporting.

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