Denmark's economy minister Marianne Jelved has refused to change legislation that prevents pension funds from holding more than 40% of assets in equities.

Tryg-Baltica had asked for the proportion to be increased to around 50% as the increase in share prices had brought it close to the ceiling. The public pension schemes ATP and LD have also found themselves close to their statutory limit of up to 35% and are pushing for an increase.

Jelved said that although shares did provide a better return in the long term, the pension funds had an obligation to secure pensions on an ongoing basis and not just in the future. She added that the government will interpret the rules flexibly and not step in when a fund breaks through the ceiling by a few per cent.

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