Danish pension fund to exit US Treasuries over finance concerns

By Beyza Binnur Donmez

GENEVA (AA) - The Danish pension fund AkademikerPension has decided to sell its holdings of US Treasuries, citing concerns about the state of US government finances, the fund confirmed.

The fund will move away from using US Treasuries for liquidity and risk management purposes and instead rely on other instruments going forward.

“We do not target Treasuries as such in our investment strategy, but we have used them for liquidity and risk management purposes for many years,” Anders Schelde, the fund’s chief investment officer, said in a statement sent to Anadolu.

“The decision is rooted in the poor US government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management. Now we have found such a way and we are executing on that,” the chief said. “Going forward, we will use cash USD, short-dated agency debt and the like.”

The decision comes at a time of heightened tensions between the US and Europe, as US President Donald Trump renews pressure on Greenland over security claims and threatens tariffs against European countries.

Schelde said, however, that the fund’s move was not directly driven by the political dispute.

“Thus, it is not directly related to the ongoing rift between the US and Europe, but of course that didn’t make it more difficult to take the decision,” he said.