Both the Employees' Holiday Allowance Fund and The Cost-of-Living Allowance Fund achieved strong returns in 2024, a year in which the financial markets were characterised by better-than-expected economic growth, sharp rises in the share prices of US technology companies, and interest rate cuts by central banks in the US and Europe.
Members of the Holiday Allowance Fund were credited with a return of 11.0 per cent, whilst members of the Cost-of-Living Allowance Fund received a return of 8.1 per cent in the main LD Discretionary fund. Global equity markets were the main driver behind the strong results, but high-grade bonds and credit investments also made a positive contribution. This is evident from LD Pensions' annual report for 2024, which was published today.
The solid returns in 2024 mean that our members have seen a significant increase in their savings. We are pleased with this year’s results, which demonstrate the value of our investment strategy.
At the end of the year, the total assets of LD Pensions stood at DKK 46.7 billion, an increase of DKK 0.3 billion compared with the previous year. The increase is attributable to high returns, which more than offset the ongoing payouts to members.
Strengthened efforts towards responsible investment
In 2024, LD Pensions took new steps to strengthen its work on responsible investment. Among other things, in LD Pensions the organisation became a member of the Labour Rights Investor Network (LRIN), which works to improve working conditions globally, and Nature Action 100, which supports companies in taking greater account of biodiversity. At the same time, LD Pensions tightened its exclusion criteria for oil and gas companies and expanded its exclusion list to include government bonds and shares in state-owned companies in countries with serious human rights violations.
“We are working purposefully to ensure good returns for our members, whilst taking responsibility for what we invest in. In 2024, we tightened our policies and used our shareholder rights to work towards a green and just transition. We are continuing this work in 2025, although we are aware that political developments in the US are making it more challenging,” says Lars Mayland Nielsen.
Key figures from LD Pensions' annual report 2024
LD Pensions
- Total members’ assets of DKK 46.7 billion.
- Profit after expenses and pension return tax of DKK 3.4 billion, comprising DKK 1.9 billion in the Holiday Allowance Fund and DKK 1.5 billion in the Cost-of-Living Allowance Fund.
- Return on investment of DKK 3.9 billion, comprising DKK 2.1 billion in the Employees' Holiday Allowance Fund and DKK 1.8 billion in the Cost-of-Living Allowance Fund.
The Holiday Allowance Fund
- Member assets of DKK 22.4 billion.
- 645,000 members.
- Attributed return after costs and pension return tax of 11.0%
- 24% of members’ assets held by employers and 76% invested.
The Cost-of-Living Allowance Fund
- Total assets of DKK 24.3 billion.
- 360,000 members.
- In 2024, members could choose to invest their savings in the main fund, LD Discretionary, three equity funds (LD Global Equities, LD Environment & Climate and LD Danish Equities) and/or two bond funds (LD Short-Term Bonds and LD Mixed Bonds).
- In 2024, approximately 89% of the assets were held in the main fund, LD Discretionary.
- LD Discretionary achieved a 8.1% imputed return after costs, LD Global Equities achieved 23.3%, LD Environment & Climate achieved 15.2%, LD Danish Equities recorded a negative imputed return of -0.8%, LD Short-Term Bonds returned 4.6 per cent and LD Mixed Bonds returned 5.3 per cent.
