For many, this strategy would be unthinkable. Yet, for nearly two decades, a Belgian wealth management firm overseeing $60 billion in assets has consistently steered clear of US government bonds. Degroof Petercam Asset Management (DPAM) states that US Treasuries do not qualify for its flagship sustainable government bond fund because the United States scores poorly on metrics such as equality and democracy. However, what began as a niche strategy for a single fund has recently been extended to other areas of DPAM's business. This time, the focus is not on sustainability concerns but on fears of investment losses. DPAM's Chief Sustainability Officer, Ophelie Mortier, explained that the decision to reduce US Treasury exposure in other parts of the firm's portfolio was "more based on valuation considerations." Mortier, who has 15 years of experience in sustainable investing, declined to specify the extent of the reduction, citing compliance reasons. However, she indicated that from a valuation perspective, reducing holdings might be a prudent move. DPAM, which is majority-owned by Crédit Agricole, is the latest Northern European investor to voice concerns about US debt. Factors ranging from fiscal expansion and tariffs to the perceived unpredictability of governance from the White House are influencing the market. While such moves are minor within the vast $30 trillion US Treasury market, they occasionally attract attention from high-level US officials. In January, a relatively unknown Danish pension fund, AkademikerPension, caused market ripples by announcing it would divest its $100 million portfolio of US Treasuries. US Treasury Secretary Scott Bessent, who was attending the World Economic Forum annual meeting in Davos at the time, sought to downplay the event. "Denmark's investment in US Treasuries, like the country of Denmark, is irrelevant," he told reporters. AkademikerPension's Chief Investment Officer, Anders Schelde, framed the decision to exit the US Treasury market within the context of policies pursued by the Trump administration. He clarified that the move targeted US government bonds specifically, not other US assets, and stated the fund's intention to prioritize European investments. "We are not giving up on other US markets," Schelde said. "But we will try to choose European investment targets more frequently, particularly equities—both listed and non-listed—as well as key sectors like energy, defense, and digital autonomy." Other institutional investors scaling back from the US Treasury market include Stichting Pensioenfonds ABP, Europe's largest pension fund with approximately €540 billion ($622 billion) in assets under management. The fund stated in January that it had reduced its US Treasury holdings by about €10 billion last year, bringing its total down to €19 billion. US Treasuries have traditionally served as a safe haven during most financial crises. However, there are indications that European investors may be reassessing this view. According to data compiled for Bloomberg by Morningstar Direct, government bond funds registered in Europe and focused on US dollar-denominated strategies experienced net outflows in both 2025 and 2024. This marks the first time such redemptions have occurred since 2013.
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