Sisi Chan

Danish pension fund to ditch U.S. Treasuries, says Greenland not the cause

AkademikerPension, a leading Danish pension fund, intends to sell off its U.S. Treasury holdings worth around US$100 million by the end of this month, driven by weak U.S. government finances.

Danish pension fund AkademikerPension will sell its U.S. Treasuries

The decision to liquidate the U.S. assets is not a nationalist reaction. This significant financial move is linked to concerns about fragile U.S. fiscal health rather than current Denmark-U.S. affairs.

AkademikerPension Decision Not Induced by the Rift

Despite the ongoing rift between Denmark and the United States over Greenland, this diplomatic issue is not the reason for the sale. The fund’s primary motivation remains finding effective methods to manage their liquidity and risk in light of the poor state of U.S. government finances.

AkademikerPension’s Assets under Management

It’s noteworthy that AkademikerPension manages 164 billion Danish crowns (or $25.74 billion) in total assets. The sale of U.S. Treasury bonds represents a small yet impactful portion of their portfolio.