Newton's Pidcock keeps Australia overweight despite falling currency

Newton's Jason Pidcock is maintaining an overweight to Australian equities in his Asian Income portfolio, despite the recent underperformance of the local currency against the US dollar.

The £3.8bn fund has its highest single country exposure to Australia, currently at around 26% according to FE. "We are fairly fully exposed to Australia and will not go overboard, but there is not a single Australian stock that I would be tempted to sell or even trim," the manager said. "The Australian dollar has fallen a lot versus the US dollar, but this will provide relief for the Australian economy and equity prices will re-adjust." He added the Australian economy is not fully dependent on China for its commodities exports, so will not suffer as much as other countries in the r...