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Pension funds hesitate to invest in Danish IT companies

Pension funds are not first in line to invest their members' money in IT companies. The IT-lobby wants pension funds to earmark money for investments in tech companies, but the pension funds are concerned over the risks involved.

In a new initiative, industry association IT-Branchen urges Danish pension funds to earmark one percent of their members pension contributions for investments in Danish IT companies.

However, this suggestion has not met unanimous approval from pension funds, Computerworld reports.

Henrik Nøhr Poulsen, Chief Investment Officer at Danish pension company PFA, says to Computerworld that venture investments in tech companies are among the riskiest investments in PFA's portfolio.

"We are responsible for our customers' savings, so there are limits to our risk capacity for this type of investments," he says to Computerworld.

In an opinon piece, Birgitte Hass, CEO of IT-Branchen, writes that, from a historical point of view, pension funds have not invested enough in Danish tech companies. She estimates that only 0.1 percent of the value creation from the top 50 largest Danish tech companies has gone to Danish pension funds.

However, PFA has a number of investments in American venture funds that invest in tech companies in Silicon Valley, which Henrik Nøhr Poulsen ascribes to the fact that results from the US are better than in Denmark, according to the report.

Chief Investment Officer at Denmark's Sampension, Henrik Olejasz Larsen, says to Computerworld that an increase in investments in Danish venture funds is unlikely due to the company's risk profile.

English Edit: Marie Honoré

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