For a decade, institutional investors have shown a bias toward U.S. markets. But after strong international outperformance in early 2025, that trend is beginning to reverse. Europe is drawing renewed interest, and Swiss companies are well-positioned to participate in this momentum.
Amid changing trade policy, tax frameworks, and geopolitical uncertainty, the U.S.’s safe-haven status is eroding. Investors are reassessing their U.S. exposure and reallocating portfolios for greater global diversification.
This isn’t a short-term trade—it’s a structural recalibration of global allocations. Europe is increasingly seen as a stable, compelling destination for capital.
Behind the Surge in U.S. Demand for European Equities
Recent U.S. political instability has accelerated a structural shift already underway. Several forces are driving this trend:
• Capital reallocation: U.S.-based fund managers with global mandates are actively increasing exposure to developed non-U.S. markets.
- In May 2025, investors pulled $24.7 billion from U.S. equity funds—the largest outflow in a year—while European equity funds attracted $21 billion, bringing year-to-date inflows to $82.5 billion, the highest in four years (Reuters, Global Markets Fund Flows, June 11, 2025).
• Valuation gap: European equities continue to trade at a discount to U.S. peers, despite comparable or stronger fundamentals.
- MSCI Europe’s forward P/E is 13.5x, compared to 20.4x for MSCI U.S., highlighting the relative value opportunity.
• Policy and stimulus tailwinds: Government-led investment in energy, infrastructure, and AI is fueling momentum across non-U.S. markets.
• Dollar diversification: With the dollar’s appeal weakening, investors are shifting toward appreciating foreign currencies and more stable international assets.
Looking ahead, large allocators, such as pension funds, endowments, and insurance companies, are expected to tilt portfolios toward global managers heading into year-end.
A Structural Shift That Demands Urgency
This is a timely opportunity for Swiss companies. Those who act now to establish relationships with U.S. investors will capture mindshare and position themselves for inclusion as capital gets deployed. In our experience, it takes a minimum of two, often three, interactions to build conviction with long-only investors.
Now is the time to leverage virtual introductions and plan physical roadshows. Companies should capitalize on this fresh U.S. investor interest to build relationships, increase visibility, and earn their place in portfolios.
Summer may slow activity, but capital allocation decisions are already underway. Those who engage now will be top of mind when investments are made.
From Momentum to Allocation: Make the Shift Work for You
Rose & Company is actively working with European companies across sectors to position them at the forefront of this shift. Through high-impact introductions and sustained dialogue with 1,500+ long-only decision-makers, we help clients build investor trust and earn portfolio inclusion.
This is a rare moment of opportunity, and we’re here to help you make the most of it. Contact info@roseandco.com to learn more.