Danish pension funds have invested 38 per cent of their assets in their home country, making Denmark their largest investment market, according to new analysis from Insurance and Pension Denmark (I&P Denmark).

I&P Denmark said this is notable given that Denmark accounts for just 0.4 per cent of global GDP, meaning Danish pension funds have invested around 100 times more in the domestic market than the country's share of the global economy would suggest.

The analysis also found that investments elsewhere in Europe recorded the strongest growth within pension portfolios in 2025.

Commenting, I&P Denmark deputy director, Tom Vile Jensen, said: "There has been a great deal of discussion about investors looking increasingly towards the US because returns have simply been stronger than in Europe for an extended period.

“But in 2025, it was European investments that experienced the strongest relative growth. And that excludes investments in Denmark, which by a considerable margin remains the industry's number one investment market.”

Indeed, the value of European holdings increased by around 13 per cent compared with the previous year.

As a result, the share of European assets in pension portfolios rose by 1.7 percentage points, with investments in the rest of Europe, excluding Denmark, now accounting for 21 per cent of total pension investments.

"Denmark remains the country where the largest share of pension savings is invested," Jensen added.

"Although we continue to push for better conditions to invest in new growth companies in Denmark and across Europe, this has not prevented pension providers from increasing their European investments over the past year."

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