Varma Mutual Pension Insurance Co., a Finnish pension fund that manages a $53 billion portfolio, is looking to shed its exposure to the U.S. stocks and bonds due to America's current lack of leadership according to Bloomberg News.
“It seems as if there is no president in the U.S.,” Risto Murto, chief executive officer of Varma Mutual Pension Insurance Co., said in an interview in Helsinki on Wednesday. “If I look at what is the moral and practical power, there is no longer a traditional president.”
Murto explains the logic behind his decision:
“The lesson from 2008 is that if we have a problem in the U.S., then we all have a problem,” Murto said. He described Trump’s response to demonstrations in Charlottesville as a “breaking point if you look at how business leaders reacted,” retreating from association with the president. Varma reduced its equity weight by 5 percent in the second quarter, mostly by cutting U.S. stocks. It’s now holding more cash and is ready to jump on opportunities as they arise.