Swiss pension funds are reassessing their exposure to US dollar-denominated assets in light of rising hedging costs, growing concerns over US fiscal policy, and increasing national debt levels.
Speaking during a conference call hosted by consultancy Complementa this week, Andreas Rothacher, head of investment research, said there is now a “certain loss of trust” in the US as an issuer of sovereign debt. He cited high hedging costs and the mounting level of US public debt as key drivers of Swiss pension funds’ strategic decisions.
Swiss pension funds already began reducing or exiting foreign currency government bonds, particularly US Treasuries, last year.
Read the full article by Luigi Serenelli on IPE's Wesite.