Currency hedging solutions: an introductory guide
As portfolios have diversified internationally, it has become increasingly important for institutional investors to manage currency risk.
1Team statistics as at 31 December 2020.
The value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.
Currency hedging techniques aim to eliminate the effects of changes in the exchange rate between the currency of the underlying investments and the base currency (i.e. the reporting currency) of the portfolio. These techniques may not eliminate all the currency risk.