Six questions institutional investors should ask to determine whether currency hedging makes sense for their portfolio.
By Bradley S. Smith|March 17, 2016 at 07:21 AM
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Like most U.S. institutional investors, pension plan sponsors generally hold their fund’s foreign asset classes in an unhedged fashion. This means they receive a total return on investment that is a combination of, first, the underlying asset’s returns in terms of the local (foreign) currency and, second, any returns resulting from the change in value of the foreign currency relative to the investor’s home currency.
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