Australian Pensions See Foreign Currencies as Cushion From Shock

Australia’s pension funds are set to boost foreign currency holdings as an alternative to fixed-interest assets to shore up their portfolios against market shocks. That’s the view of Mark Delaney, the Chief Investment Officer of AustralianSuper Pty, who sees this happening over the next five years amid persistently low yields on government bonds. Given the Australian dollar’s link to demand for commodities and global growth, holding overseas currencies can be a good hedge against market volatility and downturns, he told the...