Strategic currency hedging considerations for U.S. investors

Mary Beth Lato

Mary Beth Lato

CFA Director, Strategic Asset Allocation

Amneet Singh

Amneet Singh

Director, Asset Allocation Strategy




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Currency
Asset allocation
Governance and risk management
Implementation

Learn about the effective currency hedging strategies to help you make informed decisions regarding your investment strategies and asset allocations.

Investing in international markets means that along with the risk of the underlying investment, such as equity risk, investors are also exposed to currency risk.

In this paper we explore if U.S.-based investors should remove that currency risk through hedging with the following topics:

  1. Impact of hedging global equity for a U.S.-based investor.

  2. Total portfolio considerations for hedging currency risk.

  3. Additional considerations for investors with benchmark or peer-relative performance measurement.

  4. Other practical considerations.
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