Danish pension fund to sell $100 million in U.S. Treasurys

Danish pension operator AkademikerPension said it is exiting U.S. Treasurys because of finance concerns as Denmark spars with President Donald Trump over his threats to take over Greenland.

Anders Schelde, AkademikerPension’s investing chief, said the decision was driven by what it sees as “poor [U.S.] government finances” amid America’s debt crisis. But it also comes as tensions escalate between the U.S. and Denmark after Trump’s latest threats to tariff European countries if Greenland, an arctic territory of Denmark, isn’t sold to the U.S.

“It is not directly related to the ongoing rift between the [U.S.] and Europe, but of course that didn’t make it more difficult to take the decision,” Schelde said in a statement to CNBC.

The fund currently has a position of around $100 million in U.S. Treasurys, an AkademikerPension spokesperson confirmed to CNBC. The academics-focused fund plans to have exited that holding by the end of the month.

Schelde chiefly cited the ballooning debt bill facing the U.S. after decades of government overspending. The U.S. recorded a budget shortfall of $1.78 trillion last year, down just over 2% from 2024’s fiscal year as Trump’s broad and steep tariffs took effect.

Moody’s Ratings cut the United States’ sovereign credit rating down to Aa1 from Aaa in May, citing the budget deficit and high borrowing costs associated with rolling over debt at lofty interest rates.

The U.S.’ finances made “us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management,” Schelde said. “Now we have found such a way and we [are] executing on that.”

Denmark has grown increasingly hostile toward the U.S. as Trump has ratcheted up his calls for control of Greenland to be given to the U.S. Trump said over the weekend that he would institute tariffs on several European nations beginning Feb. 1 if the U.S. did not take control of Greenland and that those levies could rise to 25% on June 1.

European leaders have reportedly considered using counter-tariffs and other punitive economic measures as a result. Some investors have worried that European countries could dump their U.S. asset holdings in response to Trump’s new tariffs.

Greenland Prime Minister Jens-Frederik Nielsen said Monday that it would “not be pressured” and “stand firm on dialogue, on respect and on international law.”

Treasury yields in the U.S. and abroad surged Tuesday, a sign of investors feeling geopolitical turmoil rising. The U.S. dollar and stocks fell, and gold rose to new all-time highs in a session defined by the “sell America” trade.

Bridgewater Associates founder Ray Dalio told CNBC on Tuesday that sovereign funds could start to dump U.S. investments if they stop seeing the U.S. as a stable trading partner.

“On the other side of trade, deficits, and trade wars, there are capital and capital wars,” Dalio told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland. “If you take the conflicts, you can’t ignore the possibility of the capital wars. In other words, maybe there’s not the same inclination to buy … U.S. debt and so on.”

Reuters first reported the Danish pension fund’s Treasury exit.