PFA invests in defence like never before

Since Russia's invasion of Ukraine in February 2022, the country's pension savings have been increasingly invested in defence.

At PFA, Denmark's largest pension company, investments in the defence industry have grown significantly. At the beginning of the war, investments in the sector amounted to DKK 793 million – today, the figure has increased to DKK 7.7 billion. This corresponds to an increase of 872 per cent.

“This is a quite extraordinary development we are witnessing, with defence investments booming to this extent. As the world evolves, so does PFA, and that is why we are now investing far more in defence than we have in the past,” says Rasmus Bessing, head of responsible investments at PFA.

Focus on European defence

Focusing on European defence companies, this is where PFA has made the largest investments. Investments in European defence have increased by 1650 per cent at Denmark's largest pension company. 

While U.S. companies previously accounted for three-quarters of the portfolio, the distribution is now closer to 50/50 between European and U.S. defence companies.

PFA has invested in European defence companies such as Airbus, Safran, Thales and Leonardo. One of the reasons for this development is that PFA has adjusted its exclusion criteria. Although PFA still does not invest in controversial weapons such as cluster munitions, it is now possible to invest in companies that, for example, supply components to the European nuclear defence.

“There is a strong political desire for European rearmament, and this is primarily why many of the major European companies have now been included in our portfolio. This development is taking place against a tragic backdrop, but the geopolitical situation and the need for rearmament make it necessary for us to take on a social responsibility while also ensuring financial security for our customers,” says Rasmus Bessing.

Significant price increases

PFA's investments in defence have not only helped support European defence but have also delivered solid returns for pension savers. From 1 January 2022 to 22 October 2025, PFA's defence investments have generated a return of 371 per cent. In comparison, the broad global index has risen by 38 per cent in the same period.

“We have seen some significant growth figures, and there is enormous attention on this. We do not expect to see similarly high increases in the coming years, but on the other hand, the strong focus on European rearmament is something that will extend several years into the future,” says Rasmus Bessing.

At the same time, as PFA has significantly increased its investments in defence, many customers who independently manage parts of their pension savings have also allocated an additional portion of their savings to two dedicated defence funds. Customers who do not wish to be invested in defence have the option to opt out.