A Danish pension fund for academics and teachers, AkademikerPension, has announced it will fully divest its holdings of US Treasuries by the end of January 2026. The fund manages roughly $25 billion in assets, of which only about $100 million was in US government bonds at end-2025. Despite the small scale, the move is seen as a fresh signal that institutional investors are losing confidence in US fiscal and political stability.
CIO Points to Three Drivers: Fiscal Discipline, Dollar Weakness, Greenland
Chief Investment Officer Anders Schelde said bluntly in an interview: “The US is basically no longer a good credit. Its fiscal situation is unsustainable over the long term.” He attributed the decision to three factors: first, worries about Trump’s fiscal discipline and its impact on long-term debt management; second, expectations of a weakening dollar eroding the appeal of USD assets; third, geopolitical risk – Trump’s stated desire to “buy” or control Greenland, a Danish autonomous territory, which could trigger a major credit event if escalated.
Symbolic Weight Outweighs Dollar Amount
The $100 million exposure is negligible in the multi-trillion-dollar US Treasury market. But the fund’s decision carries symbolic weight, analysts say, and could encourage other European institutions to reconsider their US debt positions. The US Dollar Index (DXY) dipped briefly after the news broke, reflecting heightened investor sentiment. Schelde emphasized that the fund has always prioritized responsible investing and risk management. While no broad sell-off has materialized, the episode highlights how geopolitical tensions and US fiscal deficits are gradually reshaping global capital flows.