Australian pension funds are increasingly attracting the attention of Wall Street banks as they seek to manage their overseas investments. This trend is evident in the recent appointment of Scott Breakwell to lead Bank of America Corp’s foreign exchange forwards trading desk in Sydney. The move is aimed at capitalizing on the growing business from pension funds and tapping into this lucrative opportunity.
In addition to Bank of America, other major global lenders like Goldman Sachs Group Inc and Citigroup Inc are also vying for the opportunity to work with these money managers in Australia. The competition among banks highlights the importance of this emerging market in the financial industry, as pension funds continue to grow and diversify their investments.
The largest pension funds in Australia collectively oversee more than $650 billion in assets outside of the country, making them a significant player in the global market. This sizable pool of retirement savings is seen as a lucrative opportunity for Wall Street banks to tap into and provide their expertise in managing investments. By leveraging their expertise and resources, these banks aim to establish long-term relationships with these money managers and provide them with the tools and services they need to successfully manage their overseas investments. Overall, the interest from Wall Street banks underscores the attractiveness of this sector as a source of business and revenue.
