Denmark’s AkademikerPension has announced it is divesting USD 100m worth of US government bonds, due to the country’s “weak public finances”.

Although the pension fund does not have US government bonds as part of its investment strategy, it has used them for liquidity and risk management purposes for several years.

However, AkademikerPension investment director, Anders Schelde, said the US’ weak public finances have led the fund to conclude that it needs to find a new way of managing liquidity and risk.

“We have now found an investment solution that is manageable and are in the process of implementing it. The solution will not have a negative impact on returns,” he explained.

Schelde emphasised that the decision is not in response to the US's current pressure on Europe, but rather an operational investment decision.

"It is not directly related to the ongoing rift between the US and Europe, but of course it has not made the decision any easier to make," he said.

However, Schelde stated that several of its pension fund members have asked whether it is considering withdrawing completely or partially from the American stock market.

This, he said, was not possible because the pension fund is required by law to achieve the best possible return. The USA has been a “major growth driver” in terms of returns for the pension fund, Schelde said.

“It is difficult to predict what the distribution will be in the future, and we are naturally keeping a close eye on the situation. But it is unlikely that we will withdraw completely from American investments," he said.

"That said, we believe that in the coming years, many investors will seek to provide greater financial support for Europe's strategic independence from the United States, and it is clear that in that case, the funds will not flow to the United States or other non-European markets.

“Our own recent investment in a European defence fund can be seen as a good example of this."

The divestment will be completed by 1 February

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