Superannuation fund managers buy the Aussie to trim forex exposure
Sydney
AUSTRALIA's US$1.4 trillion local pension fund industry is one of the few friends the nation's currency has left during its worst start to a year.
Superannuation fund managers have been buying the Aussie to trim foreign-exchange exposure and increasing how much they hedge their offshore investments. After the local dollar's more than 30 per cent slide since early 2013 boosted returns on their international equity and bond holdings, investors are becoming more cautious about remaining too exposed to swings in the currency market, Macquarie Bank said.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China passes tariff law as tensions with trading partners simmer
Blinken meets Chinese counterpart Wang Yi in Beijing
South Korea’s public finances no longer a credit rating ‘strength’: Fitch
UK consumer confidence improves as inflation and taxes fall
Inflation in Japan’s capital falls below BOJ target, slows for second month
China firms are investing abroad at fastest pace in eight years