Copenhagen is a financial hub
Denmark has the world’s largest pension sector in relation to GDP, resulting in a strong asset management tradition in Copenhagen. A transparent legal system, clear regulatory frameworks and easy access to talent offer financial institutions the optimal conditions for doing business in the investment industry.
Copenhagen has a strong asset management tradition with a wealth of top-tier investment professionals and substantial assets under management.
The industry benefits from clear regulatory frameworks, an effective and transparent legal system, and ready access to relevant authorities.
A magnet for international asset management players
Some of the best results in Europe are delivered by Danish asset managers – in fact Morningstar has rated Danish asset managers among Europe’s top three performers since 2002.
This strong performance has led to a substantial increase in international clients. Asset management for foreign investors has doubled since 2010.
It begins with the world’s largest pension sector
Copenhagen’s strong asset management tradition has its roots in the Danish labour market model, where employees and employers have created a unique pension system.
Assets of over 500 billion Euros have been amassed since the inception of the pension system in the 1970s. Pension assets now amount to twice Denmark’s GDP, which is more than four times the OECD average.
Denmark is home to no fewer than ten of Europe’s top 100 pension funds. The largest is ATP, one of Europe’s leading asset managers with more than 100 billion Euros under management.
Unique covered bond market
The Danish market for covered bonds is one of the world’s largest, both in absolute terms and in relation to GDP. In 2015, it made up 15 per cent of the total European covered bond market, its value of 375 billion Euros surpassed only by the German market at 400 billion Euros.
The Danish covered bond market is also one of the most liquid, with the country’s five largest banks holding some 174 billion Euros in bonds for market making in 2015.
“The Danish covered bond market is unique. As one of Europe’s largest and most liquid bond markets, it offers not only attractive financing for home-owners and businesses, but also a stable investment opportunity with healthy returns and low risk for bond investors worldwide.”
- Michael Rasmussen, CEO, Nykredit
Copenhagen is a hot spot for fintech innovation
Copenhagen is an inspiring incubator for digital innovation. In just four years, the app MobilePay has helped turn Denmark into an almost cashless society, and the average Dane spends more time on the Internet than any other nationality.
The public sector has also spearheaded digitising the country. All interaction with the authorities has been digitised for both citizens and businesses.
100 per cent of companies and 94 per cent of the Danes have a digital signature (NemID), which is used to easily access a comprehensive range of public services, online banking and much more. There’s even an online self-service portal to facilitate establishing a company.
Denmark’s strong digital foundations have led to it being crowned Europe’s most advanced digital economy by the European Commission.
Easy to attract and retain talent
Copenhagen’s highly praised quality of life makes it easy to attract and retain employees. In fact, the city has been named one of the most attractive cities to live in for expats.
The city is green, safe, beautiful and cosmopolitan with good infrastructure and short commutes. Owing to low rents and free public services as well as an attractive tax scheme for foreign high-earners, Copenhagen is a cheaper place to live than most other major cities. And of course Danes have excellent English skills.
“Copenhagen is one of Europe’s leading biopharma and medical technology hubs and is a nexus for healthcare innovation, venture capital and the stock market. As a significant healthcare investor with total assets of EUR 40bn, it’s a great advantage for Novo A/S to be based in Copenhagen. At a personal level, I find Copenhagen a great city to live in with so much to offer.”
- Kasim Kutay, CEO, Novo A/S, Former partner at Moelis & Company