{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"EP 75: Currency hedging, the AUD and managing USD exposure \u2013 Rochford Capital","description":"When over 50% of a portfolio\u2019s offshore assets are USD-denominated, currency risk isn\u2019t just a theoretical issue\u2014it can be a real drag on performance. In episode 75 of the Portfolio Construction Podcast Series, Paul O\u2019Connor (Netwealth Head of Investment Management &amp;amp; Research) speaks with Tom Averill, Managing Director of Rochford Capital, about how investors can more effectively manage USD exposure\u2014especially with the AUD near the low end of its long-term range. They discuss why traditional hedging tools often fall short, how the Rochford Leveraged Long AUD Fund provides targeted FX exposure through OTC derivatives, and why this can be a more accurate, scalable, and tax-efficient solution than switching between hedged and unhedged funds. Also covered: the macroeconomic outlook for the Australian dollar, implications of the US credit downgrade, the growing structural role of China, and how geopolitical shifts are reshaping global currency dynamics. &amp;nbsp; To learn more about today\u2019s guest and Netwealth, visit: \ud83d\udc49 Super Accelerator (for super):  https:\/\/www.netwealth.com.au\/web\/personal\/super-and-smsf\/super-accelerator-plus\/?utm_source=pc \ud83d\udc49 Wealth Accelerator (for investment accounts):  https:\/\/www.netwealth.com.au\/web\/personal\/investment-solutions\/wealth-accelerator\/?utm_source=pc \ud83d\udc49 Compare Funds &amp;amp; Models tool to view investments:  https:\/\/www.netwealth.com.au\/nw\/Fund\/CompareFundsAndModels?utm_source=pc &amp;nbsp; Timestamps:&amp;nbsp;  00:00 \u2013 Intro &amp;amp; context: AUD volatility, USD exposure, and the case for smarter hedging 01:45 \u2013 Meet Tom Averill:&amp;nbsp;Background in FX, macro strategy, and launching Rochford Capital 05:10 \u2013 Institutional hedging explained: Why hedging behaviour differs across asset classes 08:00 \u2013 Is the AUD undervalued?: Long-term range, fair value metrics, and capital flows 11:40 \u2013 US downgrade &amp;amp; structural debt risk: What rising deficits mean for USD confidence 15:30 \u2013 Global dynamics: China\u2019s slowdown, US retrenchment, and implications for AUD 18:25 \u2013 The Rochford fund mechanics: 3x leveraged AUD exposure via OTC derivatives\u2014not futures 23:05 \u2013 Precision and efficiency: Why the fund helps avoid CGT events and hedging inefficiencies 26:50 \u2013 Cash management &amp;amp; execution: Managing liquidity, carry, and cost through institutional relationships 30:40 \u2013 Portfolio applications: How direct investors and advisers are using the fund for targeted hedging 35:10 \u2013 AUD\/USD outlook: Interest rate differentials and the case for longer-term AUD strength 38:15 \u2013 Key takeaways: Where the fund fits in portfolio construction and risk management  &amp;nbsp; Disclaimer: Netwealth Superannuation Services Pty Ltd issues Netwealth Super Accelerator. Netwealth Investments Limited issues the Netwealth Wealth Accelerator Multi-Asset Portfolio Service. Information contained within this podcast is of general nature only. Consider whether the products are appropriate for you and seek advice where required. To help you decide, read the PDS or IDPS Guide and TMD available at https:\/\/www.netwealth.com.au\/ ","author_name":"The Portfolio Construction Podcast","author_url":"http:\/\/netwealth-portfolio-construction-podcast.libsyn.com\/website","html":"<iframe title=\"Libsyn Player\" style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/36967460\/height\/90\/theme\/custom\/thumbnail\/yes\/direction\/forward\/render-playlist\/no\/custom-color\/88AA3C\/\" height=\"90\" width=\"600\" scrolling=\"no\"  allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen><\/iframe>","thumbnail_url":"https:\/\/assets.libsyn.com\/secure\/item\/36967460"}