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    A better way to hedge overseas currency exposure

    A better way to hedge overseas currency exposure

    06 June 2024 Video, Currency

    Francesca Fornasari, Head of Currency

    After a bull run lasting for more than a decade, the overvaluation of the US dollar appears increasingly unsustainable. Our Head of Currency, Francesca Fornasari, outlines why now is good time to examine your currency hedging strategy and why a passive approach may result in performance drag relative to a dynamic hedge.

    Key takeaways:

    • UK investors are increasingly exposed to overseas assets at a time when sterling appears undervalued relative to history

    • Currency hedging can be done in various ways, but we believe a dynamic approach can often be the most appropriate

    • Hedged share classes can be a very inefficient way to hedge currency risk in practice
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