STOCKHOLM: SEB Investment Management is avoiding US stock markets and dramatically cutting its risk allocation as the prospect of tighter monetary policy from the Federal Reserve transforms the global landscape for investors.
The manager of 70 billion kronor (US$8.5bil) of assets, which is a unit of the bank created by Sweden’s Wallenberg family, SEB AB, is instead shifting focus to Asia and Europe. That way it could avoid developments in US stock markets, where it finds valuations high, said Hans Peterson, global head of asset allocation and chief investment strategist.