Challenger Infrastructure Fund has netted A$66 million (€38.7 million; $54.6 million) from exiting its foreign exchange contracts.
In a disclosure to the Australian Securities Exchange, the Sydney-based fund said the gain on the closing out of its foreign exchange hedging contracts is part of its ongoing capital management initiatives.
The cash generated by the transaction boosts the fund’s liquidity position to A$140 million. However, Challenger Infrastructure Fund is now unhedged against foreign exchange risk. It said it will continue to assess its foreign currency hedging policy against market conditions.
In March the fund had to lend around A$26 million to UK water utility Southern Water, in which it owns a 15.6 percent stake, to tide the company over while it renegotiates its bank debt.