STOCKHOLM, Jan 21 (Reuters) - Swedish pension fund Alecta has divested most of its holdings in U.S. Treasuries amid increased risk and unpredictability in U.S. politics, business daily Dagens Industri
Alecta Reduces U.S. Treasury Holdings Amid Political Uncertainty
Alecta's Investment Strategy and Market Concerns
STOCKHOLM, Jan 21 (Reuters) - Swedish pension fund Alecta has sold most of its holdings in U.S. Treasuries over the last year because of the increased risk and unpredictability of U.S. politics, the fund's chief investment officer said on Wednesday.
Reasons for Reducing U.S. Treasury Holdings
"Since the beginning of 2025, we have reduced our holdings in U.S. 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.
Impact of U.S. Political Climate on Investments
"We have also continued to maintain a high currency hedging ratio against the U.S. dollar," he said.
Currency Hedging Strategies
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 ($7.7 billion-8.8 billion) worth of U.S. 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 U.S. 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 U.S. President Donald Trump began imposing tariffs.
The divestment was based on an assessment of the increased risk in U.S. 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 U.S. Treasuries, worth some $100 million, by the end of this month, citing weak U.S. government finances.
($1 = 9.1115 Swedish crowns)
(Reporting by Anna Ringstrom and Essi Lehto, editing by Terje Solsvik and Barbara Lewis)
