Swedish pension fund Alecta cuts US Treasury holdings, citing policy uncertainty

Swedish pension fund Alecta has sold most of its holdings in US Treasuries over the last year because of the increased risk and unpredictability of US politics, the fund's chief investment officer said on Wednesday.

"Since the beginning of 2025, we have reduced our holdings in US government bonds in several rounds, and together the reductions account for the majority of our holdings," Alecta's Chief Investment Officer Pablo Bernengo said in a statement to Reuters.

"We have also continued to maintain a high currency hedging ratio against the US dollar," he said.

Bernengo, however, declined to comment on the exact amount sold.

Swedish business daily Dagens Industri reported, without identifying its sources, that Alecta sold 70 billion-80 billion Swedish crowns (HK$60 billion-HK$68.64 billion) worth of US Treasuries in the last year, out of a holding of 100 billion.

In his statement to Reuters, Bernengo did not specifically mention the heightened concern over US international policy since the start of this year and threats of more trade tariffs.

These have revived market talk of the "Sell America" trade that first emerged last year when US President Donald Trump began imposing tariffs.

The divestment was based on an assessment of the increased risk in US government bonds and the dollar "related to the reduced predictability of the policy pursued in combination with large budget deficits and growing government debt," Bernengo's statement added.

On Tuesday, Danish pension fund AkademikerPension said it would sell its holding of US Treasuries, worth some $100 million, by the end of this month, citing weak US government finances.

Reuters