Trump speeds Future Fund’s retreat from US markets
Since President Donald Trump makes the US a less attractive place to invest, Australia will seek more assets in places like Europe and Japan.
Future Fund President Greg Combet said that although the diversification of US assets was already on the train before Mr. Trump was re -elected, he said that he only increases the need for insurance against volatility.
“We are thinking of the need to build a physical portfolio in a more diversified manner,” he said to the Australian Economic Development Committee on Tuesday.
The Fund has already expanded its portfolio and traditionally exposed to defense currencies such as Euro and Japanese Yen, Saffen Emek Gold.
“Although there is still a possibility of challenging opportunities in the US dollar asset markets, we will have to allocate more time and resources to investigate other markets, including Japan and the EU.”
In addition to the increasing trade and security tensions as a result of Mr. Trump’s policies, the President’s ‘great beautiful bill’ threatens to increase taxes for international investors, including future funds.
“These policies and dynamics make the US a more risky and uncertain investment target,” he said.
Greenback’s depreciation of the majority of his physical assets was the US dollar, which fell about 10 percent against large currencies this year, threatening the investments of the fund.
The fund still provided a return of 7.9 percent until March 31 and increased its assets to $ 240.8 billion.
Mr. Combet, Mr. Trump’s ‘Liberation Day’ tariffs and other deductions of politics, despite the volatility created by the fund continues to perform firmly, he said.
“Even the dramatic reversal of Trump policies is unlikely that the long -term investors that the investor suspicion is planted ‘will create a return to an enterprise as usual,” he said.
“And the world’s pre -power president Trump can be expected to be expected to be released after the tendency of deglobalization, larger geopolitical tensions, and multi -polarity tendency and after the Trump period.
“We do not think that the dynamics I talked will pass and will return the world to lightning norms.”
Despite the uncertainty, as the adoption of artificial intelligence accelerates, opportunities for the future funds for the future funds to benefit from the increase in demand for clean energy and data centers.
The Fund recently added 10 percent of the Federal Government to expand the electricity transmission infrastructure and to increase the holding of the data center company CDC.
“In addition, we have committed capital, including long -term capital expenditure programs, where two of the great secular themes of our lives intersect: Energy Transition and AI Revolution,” he said.
“Data centers, energy infrastructure and renewable generation are subjected to a continuous growth story of the future fund in the progress and adoption of artificial intelligence.
Imiz Our opinion on the fund is that artificial intelligence is perhaps faster than most. ”
In a joint statement in Sunday, Prime Minister Anthony Anthony Albania and Global Cloud Information Giant Amazon announced that the company will increase its investment in Australian data centers to $ 20 billion for the next five years.
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