LD Pensions delivered solid returns in 2025 to its nearly 1 million members. The Holiday Allowance Fund achieved a return of 8.0%. In the Cost-of-Living Allowance Fund, the main fund, LD Discretionary, delivered a return of 6.2%.
Over the past three years, LD Pensions has therefore delivered excellent returns to its members. In The Cost-of-Living Allowance Fund, members have collectively been credited with a return of 26.3% for the period 2023–2025. In the employees' holiday allowance fund, members have received a return of 31.9% over the same period.
The solid returns in 2025 more than met expectations and have once again helped to bolster members’ savings in a year marked by geopolitical uncertainty and significant volatility, particularly in the equity markets.
Strong global growth despite uncertainty in the global economy
2025 was another good year for LD Pensions in terms of investment performance. Equities, bonds and credit investments all made a positive contribution to returns.
The first half of the year was characterised by considerable turmoil in the financial markets, particularly as a result of the US administration’s fluctuating announcements regarding new tariff rates. Stock markets experienced sharp falls at the start of the year but recovered strongly, and global economic growth in 2025 exceeded expectations. In the US, significant investment in artificial intelligence (AI) infrastructure underpinned growth. At the same time, both European and US companies demonstrated a high degree of adaptability to the new trading conditions, which was reflected in strong financial results.
Currency hedging boosted returns
The US dollar fell sharply in 2025, primarily due to increased uncertainty surrounding trade policy, political unrest and growing concerns about the US’s fiscal policy direction. This had a negative impact on many Danish investment funds, but the investments held by LD Pensions were well protected by a high level of hedging against currency exposure to the US dollar, which boosted members’ returns.
Total members’ assets fell by DKK 0.8 billion to DKK 46.0 billion at the end of 2025. The decline was smaller than expected, due to high returns.
Key facts – end of 2025
- LD Pensions – is responsible for both the Employees’ Holiday Allowance Fund and the Cost-of-Living Allowance Fund. These are two funds operating under the same legal entity and managed by the same organisation.
- Members – The Holiday Allowance Fund had 625,000 members. The Cost-of-Living Allowance Fund had 324,000 members.
- Assets – LD Pensions’ total assets amounted to DKK 46.0 billion. This was divided into DKK 22.7 billion in the Cost-of-Living Allowance Fund and DKK 23.3 billion in the Holiday Allowance Fund.
- Costs – LD Pensions’ costs are low compared with similar savings schemes. In the Cost-of-Living Allowance Fund, administrative costs amounted to 0.08 per cent and investment costs in the main fund, LD Discretionary, to 0.38 per cent. The Holiday Allowance Fund had administrative costs of 0.04%, whilst investment costs were 0.38%.
