A major Danish pension fund, AkademikerPension, has announced it will sell all of its holdings in U.S. government bonds by the end of this month. While the amount is small compared to the global Treasury market, the move has drawn attention because U.S. Treasuries have long been seen as one of the safest investments in the world.
The fund manages savings for academics and professionals in Denmark, overseeing a total of 164 billion Danish crowns, or about $25.7 billion. At the end of 2025, it held roughly $100 million in U.S. Treasuries. These bonds will now be fully divested.
The pension fund emphasized that the decision is not a political protest. Instead, it is based on financial and risk considerations. Anders Schelde, the fund’s investment director, said the move reflects concerns about U.S. government finances, which he described as weak and unsustainable in the long term.
Concerns Over U.S. Finances
U.S. Treasuries are issued by the American government and have traditionally been viewed as very secure investments. However, AkademikerPension said that rising debt levels, fiscal pressures, and doubts about long-term fiscal discipline make them less suitable for managing risk and liquidity.
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Liquidity refers to how easily an investment can be turned into cash, while risk management involves protecting savings from potential losses. According to Anders Schelde, the fund believes it can find alternative ways to meet these financial needs instead of relying on U.S. Treasuries.
Other factors also influenced the decision. A weaker U.S. dollar can reduce returns for foreign investors when converted back into local currency. Anders Schelde noted that the move is primarily about managing financial risk and ensuring the fund can maintain flexibility in uncertain conditions.
Political Tensions and Greenland
Although the fund stresses financial reasons, political developments also contributed to the timing of the decision. President Donald Trump’s statements about taking control of Greenland played a role in raising concerns. Greenland is a semi-autonomous territory that is part of the Kingdom of Denmark and has consistently stated it is not for sale.
These statements triggered unease in Denmark and across Europe. The Danish Defense Intelligence Service even described the U.S. as a potential security risk for the first time, citing its willingness to use economic and technological power as leverage, even toward allies. Public protests in Denmark and Greenland further reflected widespread concern about U.S. intentions.
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Part of a Broader Trend
AkademikerPension is not alone in reducing U.S. Treasury holdings. Other Danish pension funds, including PFA, have also scaled back exposure in recent months, citing concerns over U.S. debt levels and fiscal discipline. Rasmus Bessing, head of ESG investing at PFA, noted that while the fund continues to hold significant U.S. equities and corporate bonds, cutting Treasury holdings helps diversify and better manage risk.
Other funds, such as Laerernes Pension and Paedagogernes Pension, have also reduced Treasury investments or stopped launching strategies focused on illiquid U.S. assets. Despite this trend, most Danish pension funds continue to maintain large U.S. equity portfolios, reflecting the challenge of completely avoiding exposure to the U.S. financial system.
While the planned sale of $100 million is small in the context of the $27 trillion U.S. Treasury market, it is symbolic. It shows that even conservative investors are reconsidering what qualifies as a “safe” investment amid fiscal uncertainty and political tensions.
This move highlights the growing awareness in Europe about the financial and geopolitical risks of relying too heavily on U.S. government debt, even for long-term, traditionally cautious investors.