You have misread the quote – It is the offshoreinstitutional lender creating an AUD loan facility by borrowing in foreigncurrency and lending to the DomaCom Fund in AUD – the lender will take any FXrisk and manage it as they desire. At no time is the DomaCom Fund taking any FXrisk.
FX loans for SMSF- What Next - Am I reading this right, page-8
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