Australia’s Sovereign Wealth Fund Cuts US Exposure Citing Trump’s Policies

Future Fund CEO Raphael Arndt blamed volatility and political uncertainty in the U.S. behind the move.
U.S. President Donald Trump steps off Air Force One on September 7, 2025 at Joint Base Andrews, Maryland. President Trump traveled to New York to attend the U.S. Open men’s singles final.
U.S. President Donald Trump steps off Air Force One on September 7, 2025 at Joint Base Andrews, Maryland. (Photo by Kevin Dietsch/Getty Images)
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Sourasis Bose·Stocktwits
Published Sep 09, 2025 | 2:34 AM GMT-04
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Australia's sovereign wealth fund has reportedly trimmed its U.S. market exposure to boost investments in Germany and Japan.

According to a Reuters News report, Future Fund CEO Raphael Arndt told reporters that while the U.S. remained its largest international investment recipient, volatility and political uncertainty there had forced it to cut its holdings. The fund does not reveal its individual investments.

"The government there is making changes to the regulatory structure with tariffs and changes to taxation, that is something we are watching closely, and the budget is not balanced and there's no plans to balance it," he reportedly stated after revealing the fund has now grown to $166 billion.

"These are risks we have to take into account and we have made the decision to modestly reduce our U.S. exposure and diversify the portfolio."

U.S. markets have been on a rollercoaster ride this year, as U.S. President Donald Trump’s tariff policies and their impact on the economy have kept investors on their toes. While the White House has reached several trade deals with key allies like the European Union and Japan, some tariff disputes still persist.

Retail sentiment on Stocktwits about the SPDR S&P 500 ETF Trust (SPY) was in the ‘bullish’ territory at the time of writing, while traders were ‘bearish’ about the Invesco QQQ Trust Series 1 (QQQ), which tracks the top 100 Nasdaq companies.

Additionally, Trump’s persistent attacks on the Federal Reserve also raised concerns over the U.S. central bank’s ability to tame inflation. Trump has fired Fed Governor Lisa Cook over alleged mortgage fraud, and his Justice Department has opened an investigation into it.

The federal debt is also soaring above $37 trillion, with Trump’s signature tax bill expected to add to it. The White House believes that tariff revenue will offset some of the gains.

"The areas which look most interesting to us are continental Europe, particularly Germany, with some of the announcements that the government has made about stimulating and investing in its economy," Future Funds CEO Arndt reportedly said.

"We have been moving money for quite some years to Japan, and both those markets seem somewhat cheaper than U.S. or Australian equities markets."

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