Australia's $1.5 trln pension sector invests in debt again
SYDNEY - Australia's A$2.4 trillion pension sector grew its investments in local and foreign debt by more than A$20 billion over the past year as higher yields burnished an asset class overlooked in a country where equities traditionally rule.
"We had a very low allocation to fixed interest for much of the last two or three years and are now building that back up again as rates start to normalise," said Katie Dean, head of fixed income, currency and cash at AustralianSuper. Australian investors have historically preferred stocks to bonds, in part due to dividend friendly tax laws since the 1980s that enhance income from stocks.Australian government 10-year bond yields had dropped to around 1% in 2020 before the pandemic, from 6% in 2007. They are now above 4%.
But the spectacular rise in benchmark sovereign yields since late 2020 is luring funds back to public markets, said Sivapalan.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Insurance Australia Group forecasts lower double-digit growth in gross written premiums By ReutersInsurance Australia Group forecasts lower double-digit growth in gross written premiums
Baca lebih lajut »
U.S. insurance broker Marsh to buy Australia's Honan By ReutersU.S. insurance broker Marsh to buy Australia's Honan
Baca lebih lajut »
Australia to buy U.S. Tomahawk missiles to boost long-range strike capability By ReutersAustralia to buy U.S. Tomahawk missiles to boost long-range strike capability
Baca lebih lajut »
Australia sees sharp jump in spending on care over next 40 years By ReutersAustralia sees sharp jump in spending on care over next 40 years
Baca lebih lajut »
Russia launches overnight drone strikes on Ukraine regions By ReutersRussia launches overnight drone strikes on Ukraine regions
Baca lebih lajut »
Philippines to resupply South China Sea troops after Beijing's block By ReutersPhilippines to resupply South China Sea troops after Beijing's block
Baca lebih lajut »