Ah no... this is people's money, and they likely came to conclusion the US bonds are inconsistent with the funds goals and risk appetite. Within the first few paragraphs of the article you see this:
> The decision is rooted in the poor U.S. government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management
If you're dealing with peoples pensions, even if there are higher growth portion of the funds allocation, you've got to make sure there are portions of the fund that's stable enough to be regularly liquidated to send out regular payments.
Given the whole hoo-ha with trump trying appoint their own guy into the federal reserve, it isn't that surprising the fund managers have decided to decrease their allocation.
Ah no... this is people's money, and they likely came to conclusion the US bonds are inconsistent with the funds goals and risk appetite. Within the first few paragraphs of the article you see this:
> The decision is rooted in the poor U.S. government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management
If you're dealing with peoples pensions, even if there are higher growth portion of the funds allocation, you've got to make sure there are portions of the fund that's stable enough to be regularly liquidated to send out regular payments.
Given the whole hoo-ha with trump trying appoint their own guy into the federal reserve, it isn't that surprising the fund managers have decided to decrease their allocation.