Using tools like forwards and options, currency-neutral funds hedge foreign-exchange risks. Investing in currency-neutral funds can protect against losses from unfavorable exchange-rate shifts.

Dynamic currency hedging strategies have proven effective in mitigating the heightened volatility of major currencies like the yen, euro and rupee, offering investors greater flexibility compared to ...

The primary objective of currency hedging is mitigating FX risk, and it’s important to note that hedged returns are not the same as local-currency returns. Currency hedging alters the risk-return ...

The case for strategic currency hedging is based on an objective of reducing portfolio volatility, but at current low levels of sterling, UK investors have every incentive to implement the hedge now.

This article appears courtesy of Global Investor. Here’s an opportunity for European pension funds : they, and other foreign investors, can now delegate responsibility for hedging currency exposure to ...

Amid recent volatility, many firms are now choosing to outsource their currency hedging to reduce the operational burden, however there are many different strategies that managers can choose to manage ...

Rising fears about the outlook for the dollar may make it more compelling to hedge currency exposure. This is not just a theory: investors are increasing hedges on their US holdings. To recap, forward ...

While the US dollar was continually getting stronger and sterling was continually getting weaker, British investors rarely needed to worry too much about currency movements. If you held an ...

Taiwan is set to overhaul accounting rules to help life insurers ease the impact of foreign-exchange valuations on their ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...

The African Development Bank Group (AfDB) has approved a $25 million equity investment in The Currency Exchange Fund (TCX), a specialized global institution that provides long-term local currency ...