Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
In relation to growth alternatives such as infrastructure and property which generally offer more stable cashflows, would you generally look to hedge the currency risk of these investments, particularly in the current environment? Alternatively, if an investor had a long term horizon (20+ years) simply accept that FX impact on returns for such a long period are generally neutral and therefore remain unhedged.
Hi Scott,
We don’t hedge currency exposure, especially over a long term time horizon. FX trading is an art in itself and while we do usually have a view on the various cross-rates hedging is not on our agenda – we like the natural offsets holding multiple currencies can have on a portfolio.
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