Key Takeaways
- • AkademikerPension, a Danish pension operator, is exiting its roughly $100 million position in U.S. Treasurys and plans to be fully out by the end of January 2026, according to a spokesperson who confirmed the holding to CNBC.
- • Investing chief Anders Schelde cited "poor [U.S.] government finances" and the ballooning debt burden as the main driver, stating the fund has found an alternative approach to liquidity and risk management.
- • The move comes amid escalating U.S.-Denmark tensions over Trump's threats to take control of Greenland, with proposed tariffs on several European nations starting Feb. 1 and possibly rising to 25% on June 1.
- • The U.S. recorded a $1.78 trillion budget shortfall last year, and Moody's cut the U.S. sovereign rating to Aa1 from Aaa in May 2025.
- • Ray Dalio warned that sovereign funds could reduce U.S. asset purchases if they stop viewing the U.S. as a stable trading partner, describing a possible "capital war."
Summary
Danish pension operator AkademikerPension said it is exiting U.S. Treasurys because of concerns about U.S. government finances, according to a statement to CNBC from investing chief Anders Schelde. Schelde described the decision as driven by what the fund sees as "poor [U.S.] government finances" amid America's debt crisis. A spokesperson confirmed to CNBC that the academics-focused fund holds a position of around $100 million in U.S. Treasurys and plans to have exited the holding by the end of the month.
Schelde chiefly pointed to the growing debt burden after decades of government overspending. He noted the U.S. recorded a budget shortfall of $1.78 trillion last year, down just over 2% from fiscal 2024 as Trump's broad tariffs took effect. He also referenced Moody's downgrade of the U.S. sovereign credit rating to Aa1 from Aaa in May, which cited the budget deficit and high borrowing costs tied to rolling over debt. Schelde said these conditions prompted the fund to seek "an alternative way of conducting our liquidity and risk management," adding, "Now we have found such a way and we [are] executing on that."
The announcement coincides with escalating friction between Washington and Copenhagen over Greenland, an Arctic territory of Denmark. Trump has pressed for control of Greenland and said he would impose tariffs on several European nations beginning Feb. 1 if the U.S. does not take control, with levies potentially rising to 25% on June 1. European leaders have reportedly considered counter-tariffs and other economic measures in response. Schelde said the fund's decision was not directly related to the rift between the U.S. and Europe, though he acknowledged the tensions did not make the decision harder.
Market reaction on Tuesday reflected rising geopolitical concern. Treasury yields in the U.S. and abroad surged, the U.S. dollar and stocks fell, and gold reached new all-time highs in a session defined by the "sell America" trade. Bridgewater Associates founder Ray Dalio told CNBC's "Squawk Box" at the World Economic Forum in Davos that sovereign funds could begin to dump U.S. investments if they stop viewing the U.S. as a stable trading partner, warning, "If you take the conflicts, you can't ignore the possibility of the capital wars." Reuters first reported the Danish pension fund's Treasury exit.
Schelde chiefly pointed to the growing debt burden after decades of government overspending. He noted the U.S. recorded a budget shortfall of $1.78 trillion last year, down just over 2% from fiscal 2024 as Trump's broad tariffs took effect. He also referenced Moody's downgrade of the U.S. sovereign credit rating to Aa1 from Aaa in May, which cited the budget deficit and high borrowing costs tied to rolling over debt. Schelde said these conditions prompted the fund to seek "an alternative way of conducting our liquidity and risk management," adding, "Now we have found such a way and we [are] executing on that."
The announcement coincides with escalating friction between Washington and Copenhagen over Greenland, an Arctic territory of Denmark. Trump has pressed for control of Greenland and said he would impose tariffs on several European nations beginning Feb. 1 if the U.S. does not take control, with levies potentially rising to 25% on June 1. European leaders have reportedly considered counter-tariffs and other economic measures in response. Schelde said the fund's decision was not directly related to the rift between the U.S. and Europe, though he acknowledged the tensions did not make the decision harder.
Market reaction on Tuesday reflected rising geopolitical concern. Treasury yields in the U.S. and abroad surged, the U.S. dollar and stocks fell, and gold reached new all-time highs in a session defined by the "sell America" trade. Bridgewater Associates founder Ray Dalio told CNBC's "Squawk Box" at the World Economic Forum in Davos that sovereign funds could begin to dump U.S. investments if they stop viewing the U.S. as a stable trading partner, warning, "If you take the conflicts, you can't ignore the possibility of the capital wars." Reuters first reported the Danish pension fund's Treasury exit.
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