AkademikerPension, a Denmark-based pension fund overseeing assets of around $25 billion, is preparing to fully divest its holdings in US Treasury securities by the end of the month, according to a Bloomberg report. The move underscores growing caution among European institutional investors regarding US sovereign debt and broader policy risks.

The decision signals a shift in how traditional safe-haven assets are being reassessed amid changing global economic and geopolitical conditions.

Concerns Over Fiscal Discipline and Policy Stability

At the end of 2025, AkademikerPension held roughly $100 million in US Treasuries, primarily as part of its liquidity and risk management strategy. However, the fund now believes that alternative instruments can serve similar purposes without exposure to what it views as increasing sovereign risk in the United States.

Key concerns cited by the fund include the long-term trajectory of US government finances, potential challenges to the independence of key institutions, and expectations of a structurally weaker US dollar over time.

Geopolitical Factors Influence Portfolio Decisions

Geopolitical developments have also played a role in the fund’s decision. Heightened political rhetoric surrounding Greenland and the growing use of economic tools in international relations have prompted European investors to reconsider their reliance on US assets traditionally regarded as safe havens.

This reassessment reflects a broader push across Europe toward strengthening financial independence and reducing exposure to concentrated geopolitical risks.

A Broader Shift Among Danish Pension Funds

AkademikerPension’s move is part of a wider trend among Danish pension funds. Several large institutional investors in Denmark have reduced or exited their exposure to US Treasuries in recent months, citing concerns over rising debt levels and policy uncertainty.

While US equities and corporate credit continue to remain important components of institutional portfolios, allocations to US sovereign debt are increasingly being pared back in favour of greater diversification.

Summary

AkademikerPension, which manages about $25 billion in assets, plans to exit its US Treasury holdings by the end of the month, citing concerns over US fiscal discipline, political uncertainty, and long-term credit sustainability. The move reflects a broader trend among Danish pension funds to reduce sovereign exposure to the US while maintaining investments in equities and corporate credit.

This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.

Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.