Australian funds should invest more in credit, Challenger says


Challenger Investment Management head of investment strategy Pete Robinson. — Bloomberg

SYDNEY: Australia’s pension funds should consider investing more in local-currency credit products as the greenback’s recent decline may pose risks to their expanding overseas portfolios, according to the head of investment strategy at Challenger Investment Management.  

Nearly half of about A$4.2 trillion (US$2.7 trillion) invested by these so-called superannuation funds are in overseas markets, according to an April report by the Reserve Bank of Australia.

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