Denmark’s biggest pension fund PFA said it decreased its US exposure last year because of worries about US president Donald Trump’s actions, but regarding his latest threats on trade tariffs, is now holding off further portfolio measures ahead of new market-relevant information.
Trump’s vow at the weekend to impose punitive trade tariffs on countries supporting Denmark and Greenland against his bid to take control of the semi-autonomous Arctic island has caused shockwaves in international politics and uncertainty in financial markets.
In a commentary on its investment strategy in relation to the development, PFA said it had already taken a number of measures last year to protect customers’ pension savings.
Tine Choi Danielsen, chief strategist at the DKK828bn (€111bn) pension fund, said: “We sold out of US government bonds and increased our currency hedging last year because we were concerned about the US’s unilateral approach to trade policy and the Trump administration’s repeated challenges to the central bank’s independence.
“We are of course monitoring the situation very closely and are ready to take further action if necessary,” she said.
The Copenhagen-based pension fund said that while the announcements from Trump had caused moderate falls in European share prices, it was still unclear how the European Union would respond to the US president’s rhetoric.
Choi Danielsen said: ”We are awaiting new information, not least the EU’s response. The picture may look different after that response. However, it must be said that higher tariffs will negatively affect growth in Europe.”
PFA said it recommended its individual pension customers stay calm and thought long term.
“We will probably take care of the investments ‘in the belly’ of the investment profiles, and we recommend that customers stick to their profile and let PFA manage the equity risk through the temporary turbulence that can come in the wake of political unrest,” Choi Danielsen said.
She also said that although back in April 2025 markets had fallen rapidly in reaction to Trump’s big tariff proposal, markets had quickly recovered.
Meanwhile, Danish pension fund Sampension said a new poll showed that 68% of Danes said they feared global developments in the next few years with Trump in the White House would negatively affect their retirement savings.
The pension provider said the Epinion survey conducted on its behalf recently had polled around 1,000 Danish individuals.
Helle Dalsgaard, head of advisory at Sampension, said: “It is clearly impossible to predict the actions of the Trump administration going forward, nor what impact this may have on pension savings.
“But we can simply state that despite all the incredible things we witnessed in 2025 – including the violent market plunges in the wake of Trump’s so-called ‘Liberation Day’ in the spring – the year ended up generally providing good pension returns for Danes,” she said.
