03.10.2016 - Norway, Canada show the way to cash in on resources boom
Cashed-up Canadian pension funds have been very active in Australia of late, with a strong focus on agriculture, and so has Norway’s $1 trillion sovereign wealth fund. It’s no coincidence that these resource-rich countries have been extending their global investment reach as both of them have a strategy of building up foreign currency assets, which in turn acts as a natural hedge against falling mineral prices. And as commodity prices have cooled, both Norway and Canada have become richer. That’s right: the massive foreign currency investments of both countries mean that the downturn in mineral prices increases the value of their overseas investments when converted back into local currency............................................Full Article: Source
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