“Investors should focus on currencies as a potential source of return and risk diversification for a portfolio.”
In the initial papers of this series, we have addressed issues around how institutional investors should set their investment objectives, how to articulate their asset allocation across different horizons, and how to segment their investment universe. Another key issue to address in an Investment Policy Statement (IPS) relates to the hedging policy investors should adopt for their international assets, particularly:
- Should such a hedging strategy vary by asset class?
- What considerations should drive this hedging strategy?
- How active should they be in their currency management?
You can now read the full whitepaper at the link below