The Australian exchange traded fund (ETF), iShares MSCI Australia (EWA) may be effected by a buyout. Kohlberg Kravis Roberts & Co. is paying US$2.5 billion (AUS$3.1 Billion) for half the assets of Australian media company Seven Network Limited. It will include its magazine unit, and Channel Seven, the nation’s second largest t.v. network, along with online assets as well. PowerShares Listed Private Equity Portfolio (PSP) will likely see the results of this buyout soon.
The Australian economy has been moving at a steady pace the past few years resulting in a nice advance for the county’s stocks. Also, Australian stocks make up 30% of iShares MSCI Pacific ex-Japan (EPP).
For full disclosure, some of Tom Lydon’s clients own EPP.
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