Fund managers lighten foreign exposure
According to statistics from asset consultants Intech, local fund manager exposure to international equities fell by 0.6% during November. The main reasons for the fall were an increase in the Australian dollar and increasingly volatile offshore equities markets.
During the month there was a slight increase in cash holdings and marginal increase in domestic equities. At the same time, the recent weakness in offshore equity markets and the perception of a soft landing in the US should see renewed interest offshore in the new year.