Major Australian Pension Fund HESTA Boosts Currency Hedging as Dollar Seen Undervalued
HESTA has boosted its Australian dollar holdings as the currency remains undervalued. The move follows recent rate hikes by the central bank last week.
Insights:
HESTA , a major Australian 
AU pension fund with A$100 billion in assets, has increased the hedging of its international equities portfolios and boosted its holdings of the Australian dollar . This ongoing action, confirmed on February 9, 2026, follows the fund’s valuation models indicating that the currency has been undervalued. The shift comes as the Reserve Bank of Australia tightens monetary policy, a move that creates a valuation case for the local currency while many other major central banks are holding or cutting rates.
AU pension fund with A$100 billion in assets, has increased the hedging of its international equities portfolios and boosted its holdings of the Australian dollar . This ongoing action, confirmed on February 9, 2026, follows the fund’s valuation models indicating that the currency has been undervalued. The shift comes as the Reserve Bank of Australia tightens monetary policy, a move that creates a valuation case for the local currency while many other major central banks are holding or cutting rates.
