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.
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