Your Future, Your Super - The Impact of Unintended Currency Exposure
07 August 2021
Due to the significant changes from YSYF, active risk needs to be managed prudently, including active currency risk in a global shares portfolio. Given that there is typically no expected return from this exposure, investors should consider hedging this exposure back to the benchmark with a benchmark neutralisation overlay. This type of overlay can be efficiently and cost-effectively implemented as part of a currency risk management program.
