Another European fund! Denmark's second-largest pension fund is considering reducing its exposure to the United States.

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ATP, Denmark's second-largest pension fund, has stated it may need to reduce its exposure to the US private market. The fund has joined other asset owners in reassessing the risks related to US investments.

The pension fund, which manages assets worth $112 billion, is currently conducting an evaluation. CEO Martin Præstegaard said in an interview that the evaluation is “based on an assessment of the overall situation of the US political system.” He said the US “has performed very well for many years,” but the question is “whether this performance can be sustained.”

He stated that any adjustment would be gradual. ATP's private asset portfolio—including unlisted equities, real estate, and infrastructure—was worth about 113 billion Danish kroner (about $18 billion) as of the end of last December, with a high allocation to the US market.

ATP is a pension fund mandated by Danish law, requiring all employees to contribute. As factors such as the US's persistent long-term fiscal deficit and inconsistent tariff policies increase risks, ATP has become the latest European institutional investor to express concerns about the US market. Additionally, the Trump administration’s stance on Greenland and Denmark’s key industries—including wind power and the weight-loss treatment sector—has further complicated Danish-US relations.

Præstegaard said that, meanwhile, geographic markets outside the US are beginning to offer more opportunities for investors seeking stable growth.

He said: “The rising US debt is an issue we are closely monitoring. Meanwhile, other parts of the world are becoming more mature, their economies are operating better, and there’s growth potential and a catch-up effect that investors might want to participate in.”

Concerns about how US policies may affect markets have recently led another Danish pension fund to liquidate its holdings in US Treasuries. AkademikerPension, which manages about $25 billion in assets, sold its $100 million US Treasury portfolio in January, citing fiscal sustainability, tariff issues, and the Greenland dispute. The fund is currently seeking to increase its European investment exposure.

AkademikerPension’s Chief Investment Officer Anders Schelde said: “We are actively choosing to possibly invest more in Europe. Since the US accounts for a large share of our portfolio, the adjustment may very well involve a significant reduction in US assets.”

Other Nordic pension funds have expressed similar views. Dutch pension fund PME said last month that it will focus more on opportunities in Europe, especially in technology. PME chair Alae Laghrich said at that time the US “is no longer the reliable ally it once was.”

In addition, Europe’s largest pension fund, Dutch Stichting Pensioenfonds ABP, reduced its US Treasury holdings by about 10 billion euros (about $12 billion) over the six months ending in September, down to 19 billion euros. ABP stated that any government bonds it holds “must be highly liquid and able to provide collateral for derivatives trading.”

AkademikerPension’s Schelde said that even after Trump’s term ends, skepticism toward the US may not disappear. “Once the genie is out of the bottle, you cannot put it back in.”

For a long time, ATP has been underweight US stocks relative to global equity benchmarks and avoids direct investments in US Treasuries. However, the fund still has exposure to US government debt through holdings in derivatives.

Præstegaard said: “Our strategy is not to put too many eggs in one basket. We think this strategy fits very well with the current global environment we find ourselves in.”

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