SYDNEY, AUSTRALIA Australia’s sovereign wealth fund, the Future Fund, is scaling back its exposure to U.S. assets, signaling a major shift in global investment sentiment as concerns mount over the weakening U.S. dollar and economic policies under the Trump administration.
In a rare public statement, Future Fund CEO Raphael Arndt revealed that the fund, which previously allocated nearly 50% of its portfolio to U.S. markets, is actively diversifying its holdings to reduce risk and capitalize on emerging opportunities elsewhere.
“We are recalibrating our strategy to reflect changing global economic dynamics and the evolving role of the U.S. dollar as the world’s primary reserve currency,” Arndt said during the fund’s annual briefing.
Arndt pointed to increased policy uncertainty, including fluctuating trade tariffs and inconsistent fiscal measures in the U.S., as key factors driving the fund’s move.
“Our fiduciary duty is to safeguard Australia’s future, and that means balancing returns with geopolitical and currency risks,” he added.
This decision comes amid a broader global reassessment of U.S. assets, with other sovereign wealth funds and institutional investors considering similar moves to mitigate exposure to currency depreciation and market volatility.
Financial analysts say this shift could have ripple effects on global capital flows and currency markets, potentially increasing pressure on the U.S. dollar and influencing interest rate policies.
Despite these changes, the Future Fund remains committed to maintaining a diversified, global portfolio, expanding investments in Asia, Europe, and renewable energy sectors.
Market reaction in Sydney was mixed, with the ASX 200 closing slightly lower amid concerns about reduced foreign investment in U.S. equities.
