Danish Pension Fund Akademiker Pension to Divest $100 Million in US Treasury Bonds Citing Fiscal Concerns

Akademiker Pension to Exit US Treasury Holdings

Akademiker Pension, a Danish pension fund managing approximately $25.7 billion in assets for teachers and academics, has announced its intention to divest its entire holding of US Treasury bonds. The sale, valued at around $100 million (or €85 million), is expected to be completed by the end of January 2026.

Concerns Over US Public Finance Management

The primary driver behind the fund's decision is a growing apprehension regarding the state of US public finances. Anders Schelde, the fund's Chief Investment Officer, stated that the decision is based on the 'decline in the robustness of US public finances' and concerns over 'poor US government finances'. He further elaborated that the US is 'basically not a good credit and long-term the US government finances are not sustainable'. The fund highlighted issues such as 'fiscal sustainability concerns', 'weak financial situation of the US government', 'poor fiscal discipline', and 'escalating US government debt and sustained fiscal overspending'.

Historically, Akademiker Pension held US Treasuries for liquidity and risk management purposes. However, the fund now believes that viable alternatives exist that can fulfill these needs without exposure to what it perceives as rising sovereign risk.

Geopolitical Context and Broader Trends

While the fund explicitly clarified that its decision is not directly linked to the ongoing political disputes between the United States and Denmark concerning Greenland, or broader US-Europe tensions, Schelde acknowledged that the geopolitical climate 'didn't make it more difficult to take the decision'. US Treasury Secretary Scott Bessent, speaking at the World Economic Forum in Davos, rejected the notion that European entities were targeting US debt in retaliation for Washington's designs on Greenland, labeling it a 'completely false narrative'.

This move by Akademiker Pension appears to be part of a broader trend among some European institutional investors. Several large Danish pension funds have reportedly reduced or exited their US Treasury exposure in recent months, aligning their portfolio strategies with concerns about debt sustainability and policy volatility. The US recorded a budget shortfall of $1.78 trillion in 2025, and Moody's Investor Service downgraded the US sovereign credit rating to Aa1 from Aaa in May of the previous year, signaling potential higher borrowing costs.

Looking Ahead

The divestment by Akademiker Pension, though representing a fraction of its total assets, underscores a subtle but significant shift in institutional risk perception. It highlights how fiscal credibility and geopolitical stability are increasingly central to sovereign asset allocation decisions among global investors.