Danish investors and pension funds worry over Brexit

Danish investors and pension funds may start repatriating billions of euro in assets to protect themselves from currency losses amid concern that a British exit from the EU will send markets into turmoil.

Jyske Bank estimates Danish pension funds alone have about 1 trillion kroner (€135bn) in offshore positions that aren’t hedged, leaving them exposed if investors hoard safe-haven assets such as kroner in the event of a so-called Brexit.

“In an extreme case, that money will be repatriated or hedged against currency risks should there be financial uncertainty, for example, in the event of a Brexit,” according to Niels Roenholt, the bank’s chief economist.