Independent journalism about VU Amsterdam | Since 1953
29 January 2026

Science
& Education

ABP pension fund dumps US government bonds

ABP, the pension fund for the public sector, has reduced its holdings of US government bonds by 10 billion euros. At the same time, the fund has invested hundreds of millions of euros in Palantir, a controversial company that’s said to facilitate the tracing of immigrants in the United States.

ABP pension fund (Algemeen Burgerlijk Pensioenfonds) invests the pensions of around three million civil servants, police officers, healthcare workers and members of the armed forces, as well as employees of higher education institutions. In total, it manages around 530 billion euros.

Last year, far less of that money was invested in US government debt, Dutch Broadcasting Foundation NOS reports. ABP has sold around ten billion euros worth of government bonds. Instead, the pension fund bought billions of euros in Dutch and German government bonds.

Sell-off

According to specialists, this is a strikingly rapid reduction, for which there are several reasons. For instance, the Trump administration continues to spend large sums of money without corresponding revenues. Public debt is rising sharply, making investors uneasy.

Because of tensions between the United States and Europe, these government bonds are under increased scrutiny. European investors hold around 3.6 trillion in US government bonds, according to Bloomberg – roughly forty percent of US government debt held outside the United States.

If Europeans were to suddenly sell off these bonds, this could significantly drive up interest costs for the US government. President Trump already warned last week that a possible sell-off would have serious repercussions for Europe. ABP doesn’t wish to comment on changes to its own investment portfolio.

Palantir

Last Wednesday, investigative journalism platform Follow the Money reported that ABP invested around 825 million euros in Palantir in 2025. The software company is said to assist Israel in tracking down Hamas members in Gaza and to help the US government trace immigrants, according to an American investigative platform.

Concerned pension participants have launched a petition, calling on ABP to reverse the investment decision.

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