Nordic Pensions Retreat from U.S. Assets Amid Rising Risks

Northern European pension funds and investment leaders from Finland, Sweden, and Denmark express increasing concern over holding U.S. assets due to geopolitical tensions and U.S. financial uncertainties. Shifts in asset allocation are underway, with some funds divesting from U.S. Treasuries and reassessing their exposure to U.S. financial markets.

Big Northern European investors are showing caution over U.S. assets, reflecting a growing shift away from the world's largest financial market amid geopolitical concerns, industry leaders reveal. A heightened risk premium for U.S. assets, partly due to worries over national finances, is prompting a reevaluation.

Pension chiefs from the Nordic region, home to some of Europe's largest funds, are increasingly vocal about concerns surrounding U.S. foreign policy and economic stability. Recently, two major pension funds announced divestments of U.S. Treasuries, reigniting talks of financial protectionism in response to U.S. policies.

Despite these concerns, the U.S. remains a viable yet increasingly risky investment market. Policy uncertainties have pressured the dollar and increased risk premiums, prompting discussions on portfolio adjustments. However, investors maintain that their decisions aren't driven by political motives but by careful financial assessment.

(With inputs from agencies.)