Pension funds in Australia are growing rapidly and becoming a popular target for Wall Street banks looking to secure new business. Bank of America recently made a strategic move by hiring Scott Breakwell, an industry veteran, to lead its foreign exchange forwards trading desk in Sydney. This decision reflects the increasing demand from pension funds for banking services.
Global lenders such as Goldman Sachs Group Inc. and Citigroup Inc. are also vying for the opportunity to work with these pension funds. The largest funds in Australia currently have over $650 billion in assets invested overseas, presenting a significant opportunity for banks to generate business. With the influx of retirement savings in Australia, pension funds are seeking ways to hedge their investments and ensure sustainable growth.
This has created a competitive environment among Wall Street banks to secure partnerships with these funds. By providing services such as foreign exchange trading, banks hope to establish long-term relationships with the growing pool of retirement savings in Australia.
