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Swiss Pension Funds Rethink US Dollar Investments Amid Concerns

5/11/2025

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Summary

Story summary

Swiss pension funds are reassessing US dollar assets due to increased hedging costs and fiscal concerns.
Trust in US sovereign debt is waning, leading to cuts in US Treasuries and euro bonds.
Publica, Switzerland's largest pension fund, is adjusting its investment strategy amid global debt rises.
Foreign currency assets in Swiss pension funds rose to 18.8%, with US dollar exposure at 11%.
Average returns dropped from 2% to -0.6%, though diversified portfolios mitigated losses.

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Story summary

Swiss pension funds are reassessing US dollar assets due to increased hedging costs and fiscal concerns.
Trust in US sovereign debt is waning, leading to cuts in US Treasuries and euro bonds.
Publica, Switzerland's largest pension fund, is adjusting its investment strategy amid global debt rises.
Foreign currency assets in Swiss pension funds rose to 18.8%, with US dollar exposure at 11%.
Average returns dropped from 2% to -0.6%, though diversified portfolios mitigated losses.