Profit from a Falling Aussie Dollar
The Australian dollar has come under pressure since April this year. First, the Aussie dollar pushed through parity now the Australian dollar is currently trading at .91 US dollars at the time of posting.
Falling commodity prices, a higher than expected budget deficit and expectations of lower interest rates are placing downward pressure on the Australian dollar.
Several ASX listed companies benefit from a lower Australian dollar. Companies that have significant revenues offshore tend to benefit the most from a falling $A.
Below we have listed companies that have a high percentage of their revenue from overseas operations.
|ASX200||Company Name||Total Revenue||% of Revenue from an International Source|
|SGM||Sims Metal Management Ltd||8,847||84.5%|
|JHX||James Hardie Industries SE||1,239||77.2%|
|QBE||QBE Insurance Group Ltd.||14,887||75.5%|
|ALL||Aristocrat Leisure Ltd.||704||73.6%|
|BLY||Boart Longyear Ltd.||1,958||73.5%|
|BBG||Billabong International Ltd.||1,685||70.2%|
|WDC||Westfield Group Australia||4,857||65.0%|
|TWE||Treasury Wine Estate Ltd.||1,462||63.8%|
|BSL||BlueScope Steel Ltd.||9,112||56.0%|
|SHL||Sonic Healthcare Ltd.||3,077||52.2%|
|MQG||Macquarie Group Ltd.||12,002||46.3%|
|FLT||Flight Centre Ltd.||1,678||44.9%|
|LLC||Lend Lease Group||9,014||43.4%|
|ANZ||Australia & New Zealand Banking Group Ltd.||30,175||42.2%|
Source:Factset, MSWM Research
Here at The Quinn Group our experienced team of Financial Planners and Accountants can provide you with advice and assistance in regard to Financial Planning. For advice on whether your portfolio should be reweighted as a result of the falling Australian dollar please contact Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider the appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decisions and it is recommended that you seek assistance from your financial adviser.