A Top-Performing British Fund Is Adding to Its Bets on Australia

A top-performing British fund is reallocating money out of the UK and into Australian assets in the expectation that the Aussie will extend its recent strength against a weakening sterling.

Credo Dynamic Fund managers have reallocated 3% of their £116 million ($155 million) fund out of short-dated UK government bonds and local equities and into equivalent Australian dollar assets since the middle of January. It’s the first direct investment Down Under for the fund, which started in 2017 and has beaten 94% of peers over the past five years.