Alecta Sells U.S. Treasuries: Citing Political Risk

Swedish pension fund Alecta has significantly reduced its U.S. Treasury holdings due to political unpredictability and economic risks in the United States. The fund’s chief investment officer, Pablo Bernengo, confirmed these sales as a strategic decision amid concerns over U.S. fiscal policy and trade tariffs.

Swedish pension fund Alecta has been offloading the bulk of its U.S. Treasury holdings over the past year, citing increased political risk and economic unpredictability in the United States.

According to Pablo Bernengo, Alecta's Chief Investment Officer, the fund reduced its investments in U.S. government bonds beginning in 2025, attributing this to heightened risk associated with U.S. fiscal policy and significant budget deficits. Despite these large-scale sell-offs, Bernengo did not disclose the precise figures.

Reports have suggested an offload of 70 billion-80 billion Swedish crowns ($7.7 billion-8.8 billion). This strategic move by Alecta echoes similar sentiments from Danish pension fund AkademikerPension, which announced plans to divest its U.S. Treasuries by the month's end.

(With inputs from agencies.)