Australian money market funds are money market funds that are denominated in Australian dollars. Buying Australian money market funds is done through an Australian mutual fund company or investment manager. Just as in the United States if you wanted to invest in a money market fund you might visit Fidelity Vanguard or American Funds, among many others, there are numerous Australian mutual fund companies, including Vanguard Investments in Australia. Visit http://www.vanguard.com.au to view its selection of money market funds and requirements. Keep in mind that any time you open a financial account in a foreign country, that country will perform due diligence to protect against fraud, terrorism and money laundering. Expect to document your identity.
Things You'll Need
- Internet connection
Determine why you want to buy an Australian money market fund. If it is to benefit from the rising value of the Australian dollar, then a currency hedge such as a currency futures or forward contract is potentially a more effective strategy. These require research but are easy to buy and sell. If you want to buy an Australian money market fund to hold Australian dollars and still earn a small rate of interest, then that is an effective strategy.
Open an investment account with an Australian firm. Vanguard in Australia is an option among many others. There will be significant documentation required and most will not allow a foreign investor to open the account online. Be prepared to fax copies of identification.
Select the particular money market fund you would like to invest in. There are various types, including longer term, government securities, etc. The terms are different from funds in the U.S., so research them carefully.
Deposit the funds into the account. This will also be more difficult because most likely your bank in the U.S. will not want to initiate a foreign wire. Therefore, you will need to get a cashier's check and mail it.
Ensure the funds are received and make the purchase. Be sure to document carefully all the activity in your account for tax purposes.