Goldman, BofA Target Australian Pensions for Hedging Business

Bloomberg News

Goldman, BofA Target Australian Pensions for Hedging Business
Bank Of AmericaPension FundsGoldman Sachs
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(Bloomberg) -- Wall Street banks are jostling for business from Australia’s pension funds as the world’s fastest-growing pool of retirement savings looks to ...

-- Wall Street banks are jostling for business from Australia ’s pension funds as the world’s fastest-growing pool of retirement savings looks to hedge its chunky overseas investments.Mark Zuckerberg’s Wealth Exceeds Elon Musk’s for the First Time Since 2020

The two giants of Australia’s A$3.6 trillion pension industry — the world’s fourth largest — are emblematic of its rapid expansion, which far exceeds peer markets. The nation’s pension assets are forecast to more than triple to A$13.6 trillion by 2048, according to a Mercer report last month. “Interest-rate cuts can further brighten the global economic outlook which is a positive for commodity prices,” she said.

“Given an increasing focus on offshore investing, FX hedging as a proportion of the fund has grown,” said Andrew Fisher, head of investment strategy for ART. The shift has occurred across the industry, and is amplified among the biggest pensions, he said.Bond Traders See 4.5% Yields as Next Test as Focus Shifts to CPI

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