Dutch pension fund slashes US holdings, calls America unreliable ally

Thursday 29 January 2026 - 16:20

By: Dakir Madiha

Dutch pension fund slashes US holdings, calls America unreliable ally

The Dutch pension fund PME, overseeing 60 billion euros in retirement savings for metal and technology sector workers, revealed plans on Thursday to ramp up investments in European assets and significantly cut back on US exposure. PME leaders declared that the United States is no longer the dependable partner it once appeared to be, prompting this major portfolio realignment.

PME President Alae Laghrich explicitly blamed policies under the Trump administration, citing steep tariffs, repeated threats, and outright breaches of longstanding agreements as key factors driving the decision, per Bloomberg reports. This bold step stands out as one of the sharpest public criticisms of American economic strategies from a prominent European institutional investor. It underscores a mounting trend where pension funds are rethinking their heavy reliance on US markets amid escalating geopolitical tensions.

This announcement fits into a wider pattern across Northern Europe, where major pension funds are scrutinizing US assets. Europe's largest pension fund, the Netherlands-based ABP, trimmed its US Treasury holdings from about 29 billion euros at the end of 2024 to 19 billion euros by September last year, Reuters reported. Swedish fund Alecta offloaded most of its US bonds, pointing to heightened risks tied to Treasuries and the dollar. Denmark's AkademikerPension plans to exit its roughly 100 million dollars in US Treasuries by month's end; investment director Anders Schelde told Bloomberg that the US is "fundamentally not a good credit" with unsustainable public finances long-term.

Investment strategists echo these concerns. Van Luu, global head of solutions strategy at Russell Investments which advises clients managing 1.6 trillion dollars notes frequent client discussions on pivoting away from US assets. He estimates half of their Northern European clients are contemplating such moves.

PME's US pullback builds on recent strategic overhauls. Last December, it ended ties with BlackRock, shifting a 5 billion euro equity mandate to UBS and Dutch manager MN, driven by climate alignment and responsible investing goals for better risk-return-sustainability balance. Laghrich, appointed PME chair in November 2025 after serving as risk management director, acknowledges the US economy's importance but insists the current political climate warrants caution.

Sector leaders stress these choices stem from prudent risk assessment, not politics. "There's certainly no weaponization of capital. That's not our sector's role," said Tom Vile Jensen, deputy director at Insurance and Pensions Denmark. US markets remain viable, they affirm, but now carry a steeper risk premium due to political uncertainty and fiscal worries.