AkademikerPension, a Danish pension fund dedicated to academics and managing assets totaling approximately $25 billion, has announced its decision to divest completely from U.S. Treasury securities by the end of January. The fund's Chief Investment Officer, Anders Schelde, articulated that this strategic shift was prompted by apprehensions regarding the evolving credit risk profile attached to U.S. government bonds, influenced by both fiscal and political dynamics within the United States.
During an interview, Mr. Schelde emphasized that the long-term sustainability of U.S. government finances is in question, describing them as "not sustainable." He explicitly linked the heightened credit risk to policies enacted during the tenure of former President Donald Trump, indicating an increase in risk that the pension fund can no longer justify holding. As of the close of 2025, the fund's U.S. Treasury holdings stood at roughly $100 million, a relatively minor position considering the size of its total assets.
Mr. Schelde further clarified that the fund's historical rationale for maintaining exposure to U.S. Treasuries primarily centered around managing risk and liquidity. However, he explained that the fund has identified alternative instruments capable of fulfilling these objectives without relying solely on U.S. government bonds. These alternatives include holding cash denominated in U.S. dollars along with short-dated agency debt and similar financial instruments, which the pension intends to utilize moving forward.
In addressing whether geopolitical tensions between Denmark and the United States influenced the decision, Mr. Schelde acknowledged that while the ongoing disputes did not directly cause the divestment choice, they did not facilitate an easier decision process.
Prominent economist Mohamed El-Erian has commented on related issues, underscoring that a significant global overweight in U.S. government bonds and the U.S. dollar represents a structural vulnerability for these assets. He notes that headlines highlighting exits from Treasury holdings can appear concerning, despite the fact that the Danish pension fund’s exposure is minimal when compared to the massive average daily trading volumes, which exceed $1 trillion.
Concurrently, the market has observed a notable rally in precious metals, with gold and silver achieving new all-time highs at frequent intervals. This movement is largely interpreted as capital rotation away from U.S. Treasury securities and dollar-denominated assets towards historically safer stores of value. The SPDR Gold Trust (NYSE: GLD), which facilitates gold investment, recorded a rise of 3.78% on a recent trading day, closing at $437.23. In contrast, the iShares U.S. Treasury Bond ETF (BATS: GOVT) experienced a decline of 0.33% during the same period.
Benzinga’s Edge Stock Rankings highlight the SPDR Gold Trust for strong momentum characterized by favorable price trends across short-term, medium-term, and long-term horizons, underscoring its appeal in the current investment climate.
This pension fund’s strategic move and the accompanying market dynamics underline an evolving perspective among certain institutional investors concerning the risk and sustainability of U.S. government debt, alongside a growing preference for portfolio diversification into alternative assets including short-dated agency debt and precious metals.