Citigroup Survey: Global Asset Management Giants Escape "American Exceptionalism," Non-U.S. Stocks Become New Favorites

Citigroup's latest report shows that global large asset management institutions are reducing their investments in U.S. stocks and shifting towards more favorable international stocks, especially in Europe, the UK, and emerging markets. Fifteen institutions managing over $20 trillion in assets have reduced their holdings in U.S. small-cap stocks while slightly lowering their allocation to U.S. bonds. Despite a decrease in long positions in the U.S. dollar, asset management institutions remain optimistic about the Japanese yen and have increased their allocations to the euro and the British pound. Overall, institutions are overweight in stocks and are beginning to increase their bond holdings to hedge against tariff risks