Denmark’s AkademikerPension, a big pension fund managing about $25 billion for teachers and academics, has decided to sell its US Treasury holdings by the end of the month.
The fund made this decision because of growing worries about the US government’s credit and rising political tensions under President Donald Trump, Bloomberg reported on January 20.
Anders Schelde, the fund’s Chief Investment Officer, said the US is “not a good credit” and its long-term finances are not stable. He added that Trump’s policies have created risks that the fund cannot ignore, so they are rethinking their US debt holdings.
The fund had about $100 million in US Treasuries before, mainly to manage risk and keep cash available, but now they plan to find other investments that can do the same job while reducing exposure to US government bonds.
One major reason for this decision is President Trump’s threats to take over Greenland. The pension fund said that rising political tensions and disagreements between the US and Denmark made holding US Treasuries risky.
They are also worried about a weaker US dollar and US government spending, which together make US debt less safe for cautious investors.
Trump’s actions have caused concern in Europe. EU leaders held an emergency meeting in Brussels after he threatened heavy tariffs on European countries until Greenland’s sale was settled.
These events have increased geopolitical risks, making international investors more careful.
Danish Foreign Minister Lars Lokke Rasmussen said that talks with US officials did not change the US position on Greenland. Earlier, White House officials, including Press Secretary Karoline Leavitt, said that taking control of Greenland by force is still possible, creating more uncertainty.
Schelde said that these geopolitical tensions, along with worries about US government finances and a weaker dollar, make US Treasuries less safe to invest in. This is why the pension fund decided to sell its US bonds.
AkademikerPension’s move shows that political and financial risks can affect investment decisions, even for careful pension funds. This decision may make other global investors cautious about US debt, which could impact world markets and investment flows in the coming months.
