FUNDS in Australia’s A$4.2 trillion (US$2.7 trillion) pension sector are rethinking some of their long-held strategies of buying US assets and the dollar, as confidence in American growth wanes.

Volatility around Sino-US trade tensions this year has forced investors to reassess their US exposure and the role of the dollar, which has lately failed to behave as a safe haven currency amid heightened uncertainty around Washington’s economic policy.