Australian pension funds come back to local debt


The idea of what constitutes a safe harbour from volatility has changed as US president Donald Trump imposes tariffs and upends the geopolitical status quo. — Bloomberg

SYDNEY: After years of venturing offshore, some of Australia’s biggest pension funds are scooping up more government bonds at home – assets they now deem among the safest as trade-war risks rattle markets.

Australian Retirement Trust, the nation’s second-largest fund by assets, has ratcheted up its Aussie bond allocation in some strategies to nearly the highest level since the global financial crisis almost two decades ago.

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