Australia is no longer just a hot tourist destination -- it’s also a great place to invest in, according to Anthony Cragg. On “Squawk on the Street,” the lead manager for the Wells Fargo Advantage Asia Pacific Fund spoke about the investment opportunities down under.
“In the past, it was said that Australia was a great place to visit -- but not invest in. But in recent years that has not been the case. Australia has been a great place to invest in,” said Cragg, who says this is partly due to higher commodity prices.
Australia’s biggest exports are coal, iron ore and gold. “Twenty-five years ago, Australia produced just over 1% of the world’s gold, and today it is nearly 10%,” said Cragg, whose fund has 13% of its portfolio invested in Australia.
Currently, the Aussie dollar is at an 18-year high. “I think the fundamentals look very strong in Australia, with 3.8% GDP growth, things are going well,” said Cragg.