Swedish pension fund Alecta trims US Treasury holdings amid US political uncertainty
On January 2, 2025, Swedish pension fund Alecta, managing assets worth approximately $110 billion, decided to sell most of its US Treasury bonds. The total sale amounted to about 70–80 billion Swedish kronor (roughly $7.7–8.8 billion). This move was driven by the current political instability in the United States.
This decision comes as US Treasury bonds are falling, while European sovereign bonds are declining even more sharply. Alecta explained its decision as a response to the threat of widespread European sell-offs of US bonds due to political risks.
Alecta is one of Sweden’s largest pension funds, managing capital on behalf of numerous workers across various industries and securing their pension payments through investments in diverse financial assets across international markets.
This strategy to reduce US Treasury holdings reflects the fund’s concerns about potential risks related to US political developments, as well as trends affecting European bond markets.
Going forward, such moves could increase volatility in both European and US bond markets, influencing global financial flows and prompting other institutional investors to reconsider their investment strategies.
