AUSTRALIA’s largest asset managers are betting that the Australian dollar will bounce back after the shock of the global economic crisis, as the country looks to boost its export competitiveness and attract foreign investors to invest.JFS, one of the world’s biggest asset managers, said it was “very confident” the Australian market would recover from the global financial crisis, and had invested in “high-quality” Australian shares in the past.
“This will be a new and positive story for the Australian economy, for its companies, and for the country as a whole,” Mr Jones said in a statement.JFM, which has nearly a quarter of the country’s assets, has also long been one of Wall Street s biggest investors in emerging markets, with investments in the likes of Russia, China and Brazil.
It has already begun to build up its holdings in India, the world s second largest economy, in an attempt to gain an edge in the lucrative Indian market, as a result of rising tensions over the disputed Kashmir region.
“We are going to continue to invest in Australia in the long-term, and we are going all in,” Mr JFS said in the statement.
“Australia will benefit from the rise in the Australian currency, and from the strong fundamentals of our local economy.”
Mr Jones, a former investment banker and chief investment officer of Westpac, said the global market had been a “big, scary shock” for many investors.
“For us, we’ve been investing in stocks for the last 12 years, and I think that’s something we can take advantage of,” he said.
“But the thing is, the dollar has been a major drag on the global economy, so we’ve had to focus on the fundamentals.”
It will bounce.
It will bounce.
“The bank said it believed that the bounce in the AUD was “more likely than not” to continue.”
The AUD is still a bit lower than it was last year, and is not likely to move back into the $1,000s for a while,” Mr Davies said.
Australia’s central bank has kept interest rates near zero, and Mr Davies is hopeful that the new Australian dollar could be a good catalyst for a new period of growth.”
If the dollar continues to move higher, it will encourage investment in Australia, which is the way we want to see things moving forward,” he added.”
I think the fundamentals are good, and that we are seeing an upturn in sentiment in the economy.
“That will encourage investors to come back to Australia, and if they’re willing to put their money where their mouth is, it may be the next big catalyst for growth.”
Topics:investment,economy,industry-and-finance,financial-market,wealth-and.capital,australiaFirst posted May 01, 2020 15:47:49Contact Paul McBride