Europe's Largest Pension Fund Slashed US Treasury Exposure Last Year — Nordic Investors Grow Wary of US Assets

Europe's biggest pension fund, Dutch Stichting Pensioenfonds ABP (with €538 billion in assets under management), significantly reduced its holdings in the US Treasury market last year — signaling growing caution among major European investors toward US assets.

 

According to ABP's investment disclosures, the market value of its US Treasury holdings fell from nearly €29 billion in December 2024 to about €19 billion (~$22 billion) by September 2025. This reduction of roughly €10 billion occurred amid market turbulence triggered by President Donald Trump's "Liberation Day" tariff threats on US assets.

 

ABP is not alone. Several Nordic institutional investors have also trimmed or exited US Treasury positions recently.

 

Denmark's AkademikerPension (assets ~$25 billion) announced last Tuesday (January 20, 2026) that it will fully liquidate its $100 million US Treasury holdings by the end of the month.

 

The fund cited concerns over US fiscal discipline, a weakening dollar, and heightened tensions related to the Greenland dispute (which has strained US-Denmark relations), though the CIO emphasized the decision was driven primarily by financial fundamentals rather than geopolitics directly.

 

Sweden's Alecta pension fund has sold most of its US government bond holdings since early 2025, citing elevated macroeconomic and policy risks in the US.

Symbolic Impact Despite Modest Scale  

While these reductions are small relative to the vast US Treasury market, they carry symbolic weight. Following news of AkademikerPension's move last week, US Treasury yields briefly spiked — suggesting institutional investors may be reassessing their exposure to US assets amid geopolitical and policy uncertainties.

 

An ABP spokesperson explained:  

"When evaluating government bond investments, we assess the issuing country's fundamentals and outlook, along with the bond maturity structure. These factors ensure our investments align with the long-term liabilities of a pension fund."

 

The spokesperson added:  

"For example, government bonds must offer good liquidity and serve as collateral for derivatives trading. As with any portfolio, we aim for diversification across debtors and returns commensurate with the risks involved."

 

This trend reflects broader "quiet diversification" away from heavy US asset reliance among European (especially Nordic) investors, driven by concerns over US fiscal sustainability, dollar weakness, trade policy volatility, and geopolitical frictions like the ongoing Greenland issue. While not a mass exodus, these moves highlight shifting sentiment in global capital allocation.