LONDON, May 15, 2025 – A new pulse survey by WTW reveals that a segment of UK defined benefit (DB) pension schemes are actively reconsidering their US exposures, amid mounting trade policy uncertainty and investor concern about global volatility.
Polling conducted at WTW’s recent client forum (8th May) showed that while the majority of schemes are maintaining current allocations, around a quarter are now considering pulling back from U.S. assets and dollar exposure.
This includes 25% of schemes considering a reduction in U.S. asset holdings.
Meanwhile, 34% of schemes that could answer reported a rise in member queries about market movements—an early sign that geopolitical turbulence is filtering down to beneficiary sentiment.
“This does not appear to be a reaction to any one policy. It’s the recognition that policy uncertainty itself is now a market factor.”
Alasdair MacDonald | Head of Investment Strategy UK, at WTW
Alasdair MacDonald, Head of Investment Strategy UK, at WTW, comments: “What’s new here is the scale and clarity of this emerging pivot. One in four schemes changing course is a meaningful shift in what has historically been a long-horizon, slow-to-move segment.”
“This also does not appear to be a reaction to any one policy. It’s the recognition that policy uncertainty itself is now a market factor. We note recent positive negotiations between major trade blocs are a step in the right direction – but do little to remove this uncertainty.”
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