Danmarks Nationalbank administers the assets of Innovation Fund Denmark and the Fund for Better Working Environment and Labour Retention on behalf of the Danish government. The assets of the government funds are included in the total central government debt and are managed on a consolidated basis with other government debt assets and liabilities of the central government.
Innovation Fund Denmark
In March 2014, the Danish parliament passed a law to establish Innovation Fund Denmark by merging the Advanced Technology Foundation, the Danish Council for Strategic Research and the Danish Council for Technology and Innovation. On April 1st 2014, Innovation Fund Denmark took over the rights and obligations as well as the assets of the Advanced Technology Foundation. 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 of short-, medium- and long-term Danish government bonds.
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 aimed at preventing 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 the end of 2021, the assets of the Fund totalled kr. 0.7 billion nominally.
The Social Pension Fund
The assets of the social pension fund were also administered by Danmarks Nationalbank until the last funds were disbursed in 2021.