Updated

Pension giants put brakes on US investments, warning of big tax hit

Jonathan Shapiro, Lucas Baird and Cecile Lefort

Updated Jun 17, 2025 – 2.39pm, first published at 2.01pm

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The country’s $300 billion sovereign wealth fund says it is reassessing its portfolio in the United States amid growing concerns about a punitive new tax on foreign investors backed by the Trump administration.

Future Fund chairman Greg Combet said the so-called “big beautiful bill” championed by Donald Trump could “dramatically escalate tax rates ... making the US a more risky and uncertain investment destination”.

Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney.

Lucas Baird is a journalist based in The Australian Financial Review's Sydney office.

Cécile Lefort is a markets reporter based in the Sydney newsroom. Cécile worked in New York and Hong Kong writing about global capital markets.