US EditionExclusive: Big North European investors reassess US exposure as geopolitical risk mounts
Northern European pension funds are reducing U.S. Treasury holdings due to rising fiscal deficits and geopolitical tensions, with gold prices up over 11% this year, Reuters reported.
- On Jan 22, Reuters reported big Northern European institutional investors are reassessing allocations to U.S. assets amid rising geopolitical risks.
- Citing fiscal and policy strains, pension chiefs said funds pointed primarily to U.S. fiscal risks including a budget deficit near $1.8 trillion and heightened geopolitical tensions like the Greenland dispute and tariff threats.
- Specific fund moves include Alecta selling $7.7 billion to $8.8 billion in U.S. Treasuries and AkademikerPension exiting roughly $100 million by February 1.
- Markets reacted this week with the S&P 500 suffering its worst one‑day fall since October, a weaker dollar, higher long‑dated U.S. Treasury yields and gold racing to new highs, while Nordic divestments drew notable attention.
- About 50% of investors are weighing moves, with European institutions holding about $8 trillion in U.S. assets, and two Nordic pension funds have already sold U.S. Treasuries, Bridgewater’s Ray Dalio warned of spillovers.
14 Articles
14 Articles
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Exclusive: Big North European investors reassess US exposure as geopolitical risk mounts
Big Northern European investors are increasingly wary of the risks of holding U.S. assets in the face of geopolitical tensions, pensions chiefs told Reuters, a sign of a broadening shift away from the world's biggest financial market.
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