BlackRock sees growing client push to diversify from US assets
More than 20 per cent of the firm's clients said in a recent survey that they were looking at trimming their exposure to US markets and the US dollar, said Elaine Wu, head of Asia-Pacific investment and portfolio solutions, at a media briefing in Hong Kong on Wednesday (Jul 2).
'There was a pretty good amount of people that were looking to Asia equity positioning,' said Wu, although she added that other clients remain interested in the US and those cutting back could return.
Her comments came just a week before the Jul 9 deadline for US tariffs, a potential flashpoint for global markets. US President Donald Trump has repeatedly spooked markets with on again-off again tariffs, fueling talk of a 'Sell America' trade that could herald a long-term shift away from US assets.
While the US will remain a core part of BlackRock's global portfolio, it is advising an incremental capital outlay for diversification by region, sector and asset classes, said Wu.
US equities exchange-traded funds listed in Asia-Pacific saw net selling in June for the first time since May 2023, while Asian equity ETFs got inflows over the last three months, with US$19 billion coming into China, Wu said.
European equity ETFs have seen inflows rising eight times to US$60 billion this year, putting them on track for the largest annual inflow since 2015, she added.
The asset manager's unit BlackRock Investment Institute remains positive on Japan and India, and neutral on China, Europe and the UK. BLOOMBERG
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