Returns 2025 | LD Fonde

2025 was another good year for investments. The solid returns more than met expectations and have once again boosted your savings, despite significant fluctuations in the financial markets.

Over the past three years, you have achieved a total return of 31.9% on your savings with the Holiday Allowance Fund.

If you’d like a more detailed insight into the results for 2025, you’ll hopefully find what you’re looking for on this page.

Lars Mayland Nielsen

Director of LD Pensions

What is the reason for the strong returns in 2025?

In 2025, members of the Employees' Holiday Allowance Fund were credited with a return of 8.0% after pension return tax and costs. This result was driven in particular by the investment assets, which yielded a return of 9.4%.

As a member, you were credited with a return of 8.0% in 2025, after pension return tax and fees. This means that the value of your savings actually grew by 8.0%.
Over the past three years, your return has been 31.9%. An average savings balance of 30,000 kr. at the end of 2022 has therefore increased by 9,600 kr. over the course of three years.
The first half of the year was marked by considerable turmoil in the financial markets, particularly as a result of the US administration’s shifting statements regarding new tariff rates. This led to sharp falls in share prices, but the stock markets rebounded strongly, driven by better-than-expected global economic growth. Investments in LD Pensions were well protected against the sharp fall in the US dollar, which bolstered members’ savings.
The high return is attributable to positive returns across all asset classes and a high level of hedging against currency risk. Equities delivered a return of 12.4% after currency hedging. In addition, credit contributed a return of 7.1%, private credit 4.8%, whilst high-grade bonds delivered a return of 2.6%.
The employer receivable is a secure asset with a return that reflects general wage trends based on wage statistics from the Danish Employers’ Association. The return amounted to 3.6%.
The Holiday Allowance Fund consists of an investment portfolio comprising financial assets, as well as a receivable from employers in the form of holiday allowance that has not yet been paid in. The return on the investment assets depends on developments in the financial markets, whilst the amount owed by employers is adjusted in line with a wage increase rate. Your total return is calculated as a weighted sum of these two components.
Financial developments in 2025

Despite periods of significant financial turmoil, the global economy performed robustly in 2025, contributing to healthy returns, particularly in the equity markets.

2025 turned out to be a good year for investment, with positive returns on shares, bonds and credit investments. At the start of the year, the launch of the Chinese AI model, DeepSeek, triggered a fall in the prices of US technology shares. The turmoil became more widespread and culminated following the announcement of substantial US tariff increases on 2 April. However, the equity market recovered towards the summer, partly as a result of postponements and downward revisions to the tariff rates.
Global economic growth exceeded expectations in 2025 despite the financial turmoil. 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. This contributed to the stock markets delivering high returns.
In the US, the rise in share prices was broad-based, but continued to be led by some of the largest US technology companies. In Europe, improved growth prospects and extensive fiscal policy initiatives contributed to the sharp rises in share prices. In Denmark, sharp falls in share prices, including those of Novo Nordisk, led to a more subdued performance.
The year was also characterised by global monetary policy easing. However, the prospect of significantly higher bond issuance in Europe caused European bond yields to rise. This led to capital losses on high-grade bonds, which consequently generated a lower return than in the previous two years. The strong economy led to a strong year for credit investments as a result of narrowing credit spreads.
The US dollar fell sharply in 2025, primarily due to increased uncertainty surrounding trade policy and concerns about the direction of US fiscal policy. 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.
How do we invest your holiday allowance funds?

Your return depends on developments in the financial markets and may be either positive or negative. Your holiday allowance funds are invested with the aim of generating the highest possible return, whilst taking into account the risk of loss.

We invest with the overarching aim of safeguarding our members’ interests as effectively as possible. In practice, this is achieved by estimating the long-term return within certain parameters for short-term and long-term risk of loss. We estimate what proportion of members’ assets is retained by employers within their organisations, and set investment limits for the portion of the assets that is invested (the investment assets).
In relation to the portion of the funds we invest, the asset allocation at the end of 2025 will be as follows:
A unique structure delivers solid returns at low cost

Your savings in the Holiday Allowance Fund have a unique structure, as just over a fifth of the holiday allowance funds are held by employers.

Employers are permitted to retain a portion of the holiday allowance funds within their organisations. Employers pay an indexation charge in order to retain the holiday allowance funds as liquidity. LD Pensions recognises this indexation as part of the Return accruing to members.
Employer-provided holiday allowance funds provide stability for your savings by protecting them against losses and by generating returns in line with general wage trends. This also means that the majority of the funds we invest ourselves (the investment assets) consist of higher-risk assets, which over time should generate higher returns than the index-linked funds held by employers. Overall, this should provide members with satisfactory returns whilst maintaining a balanced level of risk.
It is a financial advantage for members that no pension returns tax is payable on the indexation of holiday allowance funds held by employers. Had this portion instead consisted of investments in bonds, pension returns tax would have been payable on the returns.
It makes no difference to your return whether your employer has chosen to retain the holiday allowance funds within the company or has paid them into The Holiday Allowance Fund. The returns on both the funds held by employers and the invested holiday allowance funds are distributed in such a way that everyone receives the same percentage allocation to their savings.

2026: Opportunities in an uncertain year for investment

In 2026, moderate global growth is expected, supported by accommodative monetary policy, fiscal measures and major investments in artificial intelligence, which are expected to deliver productivity gains across many sectors. This provides fertile ground for good return opportunities in the equity markets.

However, geopolitical uncertainty could negatively impact growth prospects and, consequently, the equity markets. Furthermore, valuations – particularly in the US equity market – are high, and a small number of US technology companies account for a large proportion of the global equity market.

It is assessed that there is scope for a slightly higher return on safe European bonds in 2026, as interest rates rose in 2025. At the same time, the outlook is for a year of stable monetary policy interest rates in the euro area, owing to moderate growth prospects and inflation expectations that are in line with the target.

LD Pensions monitors market developments and actively manages the investment portfolio to manage risks and ensure the highest possible Return for its members.

The above assessment of the economic outlook for 2026 is based on financial market indicators from January 2026. LD Pensions monitors developments and revises its forecasts when warranted. Keep up to date with our market commentary under ‘News’ at ld.dk.

We actively manage the portfolio to ensure the highest possible returns for our members. This requires ongoing analysis of developments in the financial markets.

In 2026, moderate global growth is forecast. Although the outlook is reasonable, uncertainty remains high – and we are ready to adjust our strategy in line with developments.

Kristoffer Fabricius Birch

Head of Investments in LD Pensions

Low costs

The cost of keeping your frozen holiday allowance funds as a savings account with us is very low – lower even than with most other savings options.

In 2025, you paid just 0.04% for LD Pensions to manage your savings. Total investment costs amounted to just 0.38%. This works out at a total of approximately 0.42% in annual costs.

Low costs mean your savings grow in value. This is because only a small proportion of the Return is deducted to cover costs.

You can leave your savings as they are

On the day your accrued holiday allowance funds are paid out, you will receive a single lump sum which you are free to use as you wish.

Your savings can remain in your account for as long as you wish, even after you become eligible for payment. All you need to do is choose to defer the payouts via our self-service portal. Your savings can grow and act as a sort of reserve or buffer in your finances until you need them.

If you have chosen to defer the payouts, you can have your holiday allowance funds paid out at any time by requesting them via the self-service portal.

Having a financial cushion provides peace of mind. The accrued holiday allowance funds can be seen as such a cushion, and their value can grow over time thanks to the returns they generate.

There is no upper limit on how long you can leave your savings in the scheme. Once you are eligible for a payout, you are free to choose when your savings are to be paid out.

Jane Hørby Ebbesen

Head of Business in LD Pensions

Why do I even have a savings account for holiday allowance funds?

All employees who accrued holiday pay between September 2019 and August 2020, and who have chosen to leave their frozen holiday allowance in place, have savings in The Holiday Allowance Fund.

One year’s worth of accrued holiday pay was frozen following the introduction of a new holiday pay law in 2020. The intention was that the frozen holiday allowance would constitute a pension sum to be paid out when the individual employee reached state pension age. However, following the COVID-19 pandemic, the Danish government sought to stimulate the economy. A key measure in this regard was the early payout of the frozen holiday allowance. All employees were given two opportunities to have their new savings paid out by The Holiday Allowance Fund.

If you have savings with The Holiday Allowance Fund, it is therefore because you have chosen not to have all your accrued holiday allowance funds paid out, but have opted to keep them in a savings account with us instead.