MIL-OSI Economics: Stocks overtake bonds in Danes’ pension savings

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Source: Danmarks Nationalbank

Insurance and pension

April 2024

The insurance and pension sector, which manages the majority of the Danes’ pension savings, now has larger investments in stocks than in bonds. At the end of April, the sector holds stocks and bonds worth respectively kr. 2,207 billion and kr. 2,183 billion at market value. Merely 4-5 years ago, investments in stocks were considerably lower than in bonds. High returns on American stocks in recent months are the main reason why stocks have surpassed bonds in 2024. Since the beginning of the year, the sector’s return on foreign stocks amounts to kr. 81 billion, of which kr. 58 billion comes from American stocks. A significant portion of the American returns can be attributed to the so-called “magnificent 7″, namely the seven American technology companies Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.* The return on the bond portfolio, on the other hand, has been negative in 2024.

Market value of stocks is now higher than that of bonds


Danish insurance and pension companies’ investments in stocks and bonds respectively. Danish investment funds have been looked through so that their distribution of investments in equities, bonds, etc. are visible. Funds-of-funds, derivatives, and loans and deposits are not included in the figure. Find chart data in the Statbank.

*These stocks also yielded high returns in the end of 2023, se Danish investors prefer American Stocks (link).

MIL OSI Economics