Nearly a quarter (24 per cent) of UK defined benefit (DB) pension schemes are actively considering a reduction in their US asset holdings, research from WTW has revealed.

The survey found that a further 1 per cent of UK DB pension schemes are looking to eliminate their US asset holdings entirely as a result of the mounting trade policy uncertainty and investor concern about global volatility.

However, the majority (74 per cent) are leaving their US asset exposure unchanged, while 1 per cent are actually looking to increase their US exposure.

But there is also evidence that geopolitical turbulence is filtering down to beneficiary sentiment, as 34 per cent of respondents said that they had seen an increase in member inquiries regarding market movements in pensions since the start of 2025.

Commenting on the findings, WTW head of investment strategy UK, Alasdair MacDonald, said: "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.”

---