Australian Pensions Set to Boost Currency Hedging, Survey Shows

The vast majority of Australia’s pension funds intend to shield their portfolios from currency swings amid fears tensions in the Middle East will rapidly escalate, according to a survey by Commonwealth Bank of Australia.

Nearly 90% of funds plan to increase hedging ratios across asset classes over the next three months, with a particular focus on hedge funds, private credit and private equity, the survey showed. None intend to reduce their currency hedging, it found.