Trump's policy that pushes the most important Australian investors to reduce their belongings of US bonds

A number of major investors in Australia say they have begun to reduce their possession of US treasury bonds, and they have noticed their concerns about President Donald Trump’s plans on customs duties and taxes. Funds SA, a party by the state that has the $ 30 billion equivalent, has reduced its position in US sovereign debt to below normal weight, while Queensland Investment Corp, which amounts to $ 86 billion, said some of the customers who manage their money have reduced their exposure to treasury bonds. Mehalkis, executive director of investment at Vands in Adelaide, said that the state of financial uncertainty in the United States, together with the fact that the returns on bonds did not reflect the level of risks associated with their possession, made these securities less attractive. He added that the company is now ‘less than the target weight with a few percentage points’ relating to treasury effects. A shift that reflects the erosion of investor confidence in ‘exceptional America’. This transformation by Australian investors is an indication of how President Trump’s efforts to reform global trade and the US economy is undermining the so -called ‘US exceptional’. It has become the largest life insurance company in Japan looking for alternatives to treasury effects, and the Asian families offices have shrunk or frozen their investments in the United States, while the Bloomberg index of the dollar dropped by more than 7% this year. “Vands” used its lighter position in the Treasury bonds to transfer money to the effects of US businesses with an investment and high returns, and intends to reduce its public exposure to the US dollar, according to Michakis. He said: “The US dollar will be the first one to be affected, and if the financial situation worsens more, we will see a serious decline in the revenue curve.” He added: “We want to be more likely to retain the Australian dollar and carry a greater amount of exposure to foreign -American currencies.” Trump’s financial plan raises concerns about the market in April’s statement of increasing mutual customs duties, the ghost to accelerate inflation in the United States and delay economic growth. The US president is also pushing the transition from a tax and spending account, analysts expect the billions of dollars financial deficit over the next decade. In this context, the KIC, based in Brisbane, which includes its clients of the largest pension funds in Australia, believes that US assets such as Treasury bonds will now require a higher risk allowance than before, due to the United States uncertainty and financial path. “We hear investors that the developments we have seen in recent months have led them to reconsider their assignments to the US market, either in terms of fixed income or currencies,” said Beverly Morris, head of the company’s liquidation market division. She added that the changes in the portfolio may take months, based on the schedule of investment committee meetings, but the tone of discussions suggests that they are “a matter of time no longer”, pointing out that these investors are studying the increase in their possessions of Australian, European and Japanese government bonds. The Trump tax project threatens the Australian pension funds in addition to the fear of raising the loans of the US government, which includes the new Trump bill, which is called the ‘big and beautiful buttons’, includes a clause that imposes fees on individuals and institutions based on the policy of the tax countries that consider the Trump administration as unparbed. This will affect Australian pension funds that usually have a significant exposure to the US market through stocks, fixed income and private assets. Amp Ltd, one of the largest asset managers in Australia, said he had frozen his US investments in the long run because of the bill, according to Stewart Elliot, head of investment portfolio management in an interview this month. The Future Fund, the Australian Sovereign Wealth Fund, said this week that the United States has become a more mysterious investment destination and requires a higher risk allowance. The Safe Haven title moved to Swiss Frank, the US dollar has withdrawn against all currencies of countries over the past three months, despite the conflict between Israel and Iran, which was supposed to improve demand for the dollar as a safe haven. This role seems to move to the Swiss franc, which rose by 7% against the dollar during this period. Morris said: “In cases where clients had a great exposure to the US dollar within their governors or in the baskets of foreign exchange, it is logical to diversify this exposure to other currencies that show greater protection property,” Morris said.