Fiducian plays down Grexit concerns

Fiducian investment manager Conrad Burge said while Greece's debt crisis caused a dip in the Australian share market, a default on the country's debts would have little impact on Australia.

"It is important to note most debt currently owed by Greece is to either other European national governments or to international institutions," Mr Burge said.

"These institutions certainly have the resources to cope with any default or 'haircut' [write-down] that may occur in a worst-case outcome for this crisis.

"Therefore, much of the rhetoric about this crisis appears to be overblown," he said.

Mr Burge added that while Europe is still looking to keep Greece within the single currency and to avoid default, it is "important to stress" that whichever way the nation decides to go, the issue is a "relatively minor" one for everyone involved.

"The risk of 'contagion', or a domino effect on other members of the single currency union, is minimal today because of the somewhat improved economic position of other Euro zone states at risk, such as Portugal, Spain and Italy in particular," he said.

Mr Burge added that Fiducian does not currently intend to make any major portfolio changes.

"Fiducian's multi-manager diversified funds in particular are constructed to weather this type of market stress," he said.

"Our asset allocation is currently moderately tilted towards overseas shares to take advantage of any downward shift in the domestic currency, while exposure to domestic shares and listed property securities is being maintained at close to benchmark."