Exclusive: Big North European investors reassess US exposure as geopolitical risk mounts

• Russell Investments, advising clients with $1.6 trillion in assets, reports about 50% of Northern European clients are considering tilting away from U.S. assets amid policy uncertainty and debt concerns
• Sweden's Alecta and Denmark's AkademikerPension have sold or are divesting U.S. Treasury holdings, citing increased risk associated with U.S. government finances and the dollar, which fell 10% against major currencies last year
• The public nature of this debate is unusual for long-term institutional investors, who typically avoid commenting on current affairs, though funds emphasized decisions are professional assessments not political 'weaponisation of capital'

Summary: Major Nordic Investors Reassess U.S. Asset Exposure

Key Development: Large Northern European pension funds are increasingly scrutinizing their U.S. asset holdings amid mounting geopolitical concerns and fiscal worries, signaling a potential shift away from the world's largest financial market.

Major Players:

• Russell Investments (advises $1.6 trillion, manages $636 billion) reports 50% of clients, particularly in Scandinavia and Netherlands, are considering reducing U.S. exposure
• Swedish pension fund Alecta has sold most U.S. bond holdings
• Denmark's AkademikerPension divesting U.S. Treasuries by month-end
• Finland's Ilmarinen (€65 billion/$76.1 billion AUM) and Sweden's AP3 ($61 billion) reassessing positions

Key Concerns:

• U.S. foreign policy uncertainty and fiscal position threatening dollar stability
• Rising risk premium on U.S. assets
• Trump administration's policies, including territorial ambitions for Greenland
• High debt levels

Market Impact:

• Dollar fell 10% against major currencies in 2025 amid tariff hikes
• 30-year Treasury yields trading around 4.9%, near global financial crisis levels
• U.S. stocks remain near record highs despite concerns
• Gold gaining appeal as alternative

Notable Context:

The public nature of this debate is highly unusual, as institutional investors typically avoid commenting on geopolitically-sensitive allocation decisions. However, Nordic funds emphasize these are professional investment decisions, not political statements or "weaponization of capital."

Bottom Line: While the U.S. remains "investable" with strong markets and economy, major European institutional investors are formally reconsidering allocations—a rare public acknowledgment of increased country risk premium that could signal broader portfolio shifts among global asset managers.