Danish Pension Fund Divests from U.S. Treasuries
AkademikerPension, a prominent Danish pension fund, announced that it would divest from its U.S. Treasuries holdings. The fund, valued at approximately $100 million, plans to complete this sale by the end of January 2023.
Danish Pension Fund Divests from U.S. Treasuries
The decision to sell follows concerns over the ongoing weakness in U.S. government finances. AkademikerPension’s Investment Director, Anders Schelde, emphasized that this move is part of a broader strategy to enhance liquidity and manage risk effectively.
Reasons Behind the Divestment
According to Schelde, the divestment is not politically motivated. He stated, “The decision is rooted in the poor U.S. government finances, which make us think that we need to find an alternative way of conducting our liquidity and risk management.”
He also acknowledged that the ongoing tensions between the U.S. and Europe did not simplify the decision but noted it was not the primary driver.
About AkademikerPension
AkademikerPension manages a substantial portfolio totaling 164 billion Danish crowns, approximately $25.74 billion. This divestment decision represents a strategic shift in the fund’s investment approach amidst evolving market conditions.
- Total fund management amount: 164 billion Danish crowns
- Value of U.S. Treasuries being sold: $100 million
- Completion date for divestment: January 31, 2023
As the financial landscape continues to change, AkademikerPension remains vigilant, seeking opportunities that align with its liquidity and risk management goals. This strategic realignment demonstrates the fund’s adaptability in a challenging economic environment.
