Greenland's pension fund is contemplating whether it should continue investing in U.S. equities, with its Chief Executive Officer stating the move would serve as a symbolic protest against President Trump's attempts to gain control over the Arctic island.
SISA, the pension company managing assets of approximately 7 billion Danish kroner (around $1.1 billion), currently has an exposure of about 50% to the U.S. market, primarily concentrated in publicly traded stocks. Although a final decision has not been made, its board and investment committee have been actively debating the pros and cons of divestment, CEO Søren Schock Petersen revealed in an interview.
"We are still discussing it, and we will continue to do so. Perhaps at some point in the future, we will say enough is enough," Petersen commented via phone. "This persistent pressure might ultimately lead to a decision that we must act now and can no longer ignore the situation."
This week, Trump's threat to impose tariffs on European nations opposing his bid for control of Greenland reignited discussions among foreign holders about selling U.S. assets. However, Trump retracted the tariff plan on Wednesday, announcing a "framework for a future agreement" concerning the island.
Petersen's initial comments were made prior to Trump softening his stance, and he later affirmed that his earlier statements regarding the fund's re-evaluation of U.S. investments still stand.
A decision by the Greenland pension fund to divest from U.S. assets would mark a significant shift, given the dominant stature of the U.S. stock market. U.S. stocks constitute roughly 70% of the MSCI World Index, and their stellar performance over recent decades has fueled the notion of "American exceptionalism," making the market nearly impossible for virtually all investors to overlook.
In Europe, some pension funds have already announced sales of U.S. government bonds this week, though a full exit from equities has not yet occurred. Danish pension fund AkademikerPension stated it plans to divest its approximately $100 million in U.S. Treasury holdings by the end of the month. Sweden's largest private pension fund, Alecta, has sold the majority of its U.S. government bonds since the beginning of 2025.
The 65-year-old Petersen acknowledged that the fund's holdings of U.S. Treasuries are minimal, and even a sale of U.S. stocks would have a limited practical impact on U.S. capital markets. He also pointed out that the decision to divest from equities is considerably more complex than selling government bonds.
"Would it be a fair decision? After all, only half of the American population voted for Trump," he questioned. "If we ultimately divest, but U.S. stocks continue their recent performance, will our fund members still support this decision?"
Petersen stated that the "worst-case scenario" would be a military invasion by the U.S. Greenland's Prime Minister said on Tuesday that residents, however unlikely, need to begin preparing for a potential military invasion.
Petersen predicted that in such an extreme scenario, most Greenlanders would seek refuge in Denmark. He noted this could negatively impact the valuation of the fund's private investments in Greenland, such as its recent acquisition of a stake in a local seafood company.
Regarding whether SISA's assets could be confiscated by the U.S. following a potential invasion, Petersen believed it is "probably not, but of course, no one can give absolute guarantees."
SISA Pension was established in 1999, is owned by over 44,000 members, has its main office in Nuuk, and currently employs six people.
"Compared to others in the industry, our size is very small," Petersen said. However, a decision to sell U.S. assets "could be symbolic, it could be a signal."
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