Government funds


Danmarks Nationalbank administers the assets of the Social Pension Fund, SPF, Innovation Fund Denmark and the Fund for Better Working Environment and Labour Retention on behalf of the central government. The assets of the government funds are included in the total central government debt and are managed on a consolidated basis with other financial assets and liabilities of the central government in the area of government debt.

The Social Pension Fund​

SPF was established in 1970 by the Social Pension Fund Act, whereby a special pension contribution was introduced. The pension contributions – and thus payments into SPF – ceased in 1982. Since then, the assets of SPF and the interest accrued less pension yield tax have been used for financing pension improvement measures.

SPF is managed by a committee comprising representatives of the Ministry of Finance, the Danish Agency for Labour Market and Recruiting and Danmarks Nationalbank. Day-to-day management of the assets is undertaken by Danmarks Nationalbank. The principles for asset management are laid down in Regulations governing the management of the Social Pension Fund. According to these regulations, the assets can be invested in Danish listed bonds. The assets of the fund are managed on a consolidated basis with other central-government financial assets and liabilities under the government debt area. At end-2017, the assets of SPF totalled kr. 47 billion nominally.

Innovation Fund Denmark

In March 2014, the Folketing (the Danish parliament) passed a law to establish Innovation Fund Denmark by uniting the Advanced Technology Foundation, the Danish Council for Strategic Research and the Danish Council for Technology and Innovation. On 1 April 2014, the law came into force and Innovation Fund Denmark succeeded the rights and obligations previously owned by the Advanced Technology Foundation. In addition, the assets of the Advanced Technology Foundation were transferred to Innovation Fund Denmark. Danmarks Nationalbank continues to administer these assets.

By agreement with the Danish Ministry of Finance, the assets of the Fund may be invested in Danish government bonds only. The investment strategy for Innovation Fund Denmark is to aim for an equal distribution on short-, medium- and long-term Danish government bonds. At end-2017, the assets of the Fund totalled kr. 14 billion.

The Fund for Better Working Environment and Labour Retention

The Fund for Better Working Environment and Labour Retention was established in 2007. Its assets are used for preventive measures, retention and inclusion in the labour market. The Fund provides support for measures to prevent physical and mental impairment, work-related accidents and occupational diseases. A total of kr. 3 billion was transferred to the Fund when it was established, and no further capital injections from the government are planned.

It is a statutory provision that the assets of the Fund for Better Working Environment and Labour Retention may be invested in Danish government bonds only. The investment strategy is aimed at achieving revenue from interest and redemptions to match future transfers to the Ministry of Employment. At end-2017, the assets of the Fund totalled kr. 0.7 billion.