A major Danish pension fund, AkademikerPension, has announced plans to fully exit US Treasury holdings by the end of this month. The fund says rising credit risk and weakening fiscal discipline in the United States are the key reasons behind the decision.
Why AkademikerPension Is Selling US Treasuries
AkademikerPension Chief Investment Officer Anders Schelde said US public finances are no longer sustainable under the current political environment. He highlighted three major concerns.
- Weak fiscal discipline and growing debt levels
- A softer US dollar outlook
- Political uncertainty linked to President Donald Trump statements on Greenland
The fund currently manages around $100 million and believes safer investment alternatives are available outside US government bonds.
Broader Danish Pension Fund Moves
AkademikerPension is not alone. Danish pension funds collectively sold around 10 billion Danish kroner worth of US Treasuries during 2025, based on data available up to mid December.
Despite these sales, US assets still make up a large share of European institutional portfolios, including Danish pension funds.
Danish Pension Exposure to US and Europe
According to a June 2024 report by F&P, Danish pension funds had significant investments across global markets.
- 1.143 trillion kroner invested in the United States
- 861.7 billion kroner invested in Europe excluding Denmark
- 900 billion kroner invested in US equities
- 300 billion kroner invested in European Union equities
Greenland Dispute and Trade Tensions
Political tensions between the United States and Europe have added to investor concerns. President Donald Trump recently announced tariffs on imports from European allies who oppose US plans to take over Greenland, which is an autonomous territory within the Kingdom of Denmark.
European leaders argue that new tariffs would violate a trade agreement reached with Trump last year.
Possible EU Retaliation Measures
European Union leaders are expected to discuss retaliation measures at an emergency summit in Brussels on Thursday.
One option under discussion is a package of tariffs on 93 billion euros worth of US imports. These tariffs could automatically come into effect on February 6 if a six month suspension ends.
US Response to Greenland Concerns
US Treasury Secretary Scott Bessent said on Tuesday that he remains confident the United States and Europe will reach a solution over Greenland. He dismissed concerns of a trade war and described current reactions as hysteria.
What This Means for Investors
The exit of AkademikerPension from US Treasuries highlights growing caution among European institutional investors. While US assets remain a core part of global portfolios, political risk and fiscal sustainability are now playing a bigger role in allocation decisions.
Frequently Asked Questions
Why are Danish pension funds selling US Treasuries?
They are concerned about rising US debt, weaker fiscal discipline, political uncertainty, and currency risk.
Is the US still a major investment destination for Europe?
Yes. Despite recent sales, US assets still account for a large share of European pension fund portfolios.
Could EU US trade tensions affect markets?
Yes. New tariffs or retaliation could impact currencies, bonds, and equities on both sides.
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