Trump chaos prompts top Canadian and Danish pension funds to cool on US

Stay informed with free updates

Just sign up to Private own capital MYFT DIGEST – Shipped directly to your inbox.

Some of the world’s largest pension funds stop or re-evaluate their personal market investments in the United States, saying that they will not resume after the country of Donald Trump’s unconditional policy website.

The shifts emphasize how large institutional investors review their influence in the world’s largest economy, as the US President’s commercial policy raises markets, increasing the growing content of liquidity.

Some Canadian funds are returned to more than taking private assets in US, geopolitical concerns and fears they will lose tax breaks on their American investments. The Canadian Pension Plan Investment Council, which has $ 699 billion ($ 504 billion), is one of those who consider it approach.

Meanwhile, one of Denmark’s largest pension funds has made new investment in US private capital due to stability and victory threats, the Fund’s executive reported financial times.

“If some private stock funds come and say:” We have a great contribution to the United States, “we will say.

The markets were wildly turned this month when Trump said he would cut sharp tariffs on the largest trading partners in America before 90-day pause.

The executive in the Danish Foundation said that the US approach to Greenland, a semi-final area, which overcomed Denmark, was “very hostile.” “It’s hard to find a happy smile and just say.” Now we start investing in that country, “the man added.

Another Danish foundation is also retracted. Anders Shelden, Chief Investment Officer of Akademikerpension, which is led by DKR150BN (20 billion euros), said that now is discussing the attractiveness of US investment “every day.”

Shelden said he started taking “quite fundamental changes” for his portfolio, which “most of the time can take us a significantly less strategic effect in a year.”

Stepan lost, the Minister of Economy of the Denmark told FT that it was not aware of the Danish means that change their approach to the United States. But he added that due to the “risk and uncertainty”, the foundations are pushing the foundations to the scale due to the “risk and uncertainty.”

CPPIB, the largest Pension Plan in Canada, is also more careful about the effects of its US infrastructure for fear that can lose foreign governments and their retirement funds.

Another person who recently held discussions with the retirement giant said that it would be “incredibly difficult” with private capital financially in the United States, taking into account the geopolitical background.

CPPIB did not answer comments requests.

CPPIB has significant stakes in more than 50 US industrial, retail, office and residential properties. At the end of September, $ 50 billion worth $ 50 billion worth $ 50 billion worth $ 50 billion, including the funds exerted by Silver Lake, Carlyle and Blackstone.

A person familiar with another Canadian pension fund strategy says that there was “very uncertainty” what kind of infrastructure investments were made by Trump’s administration.

“If we do not have any US investments in the United States, we will reduce the transaction. And then we will discuss our strategy,” our strategy added.

Tensions between Washington and Ottawa ignited on tariffs and Trump’s proposals, which Canada should become the 51st US state.

But some Canadian pension funds expect the impact of their own private capital to remain unchanged. Caisse de Dépôt et Québec, which has a $ 473 billion active, said that he believes that half of his personal share portfolio will remain in the United States.

“It is difficult to invest everywhere these days. Geopolitics have become more complicated. .. We intend to stay active in the United States, “says Martin Longamper, CDPQ private capital and credit head.

But he added that “Tariff noise complicates evaluating businesses, and we must consider it until the items are settled.”

The leaders of the two highest private capital of the United States say they have begun to worry about new investments for Canada’s investors.

While they have not yet seen any change in money flows, they say that Trump’s aggressive approach to Canada has angered the country that political officials will put pressure on the United States to restrict new investment in the United States.

Additional report of Robert Smith in London and in Richard Milne