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What is the case for active currency hedging?

BNP Paribas Asset Management
 

Join our specialist for the webcast on 9 March

With volatility in the currency markets rising on the back of factors such as geopolitical tensions, monetary policy divergence and political and (trade) policy uncertainties, many investors are examining ways to generate higher risk-adjusted returns from their internationally-exposed equity portfolios.

Such cross-border portfolios typically entail currency risk, against which investors would like to be protected. While passive, or static, hedging may reduce such foreign-exchange risk, there are usually liquidity risks and opportunity costs. Passively-hedged investors may experience negative cash flows during periods of domestic currency weakness.

Active currency hedging can be an alternative. It aims to reduce the risk of portfolio losses and increase returns by varying the level of hedging to reflect the prevailing financial market and macroeconomic conditions.

Join us for this 30-minute webcast

  • Speaker: Momtchil Pojarliev, Senior Portfolio Manager
  • Moderator: Maureen Sheehy, Investment Specialist Currencies

 

Thursday, 9 March 2017

10:00 US EST / 15:00 GMT / 16:00 CET

As a participant in the CFA Institute Approved-Provider Programme, BNP Paribas Investment Partners has determined that this programme qualifies for 0.5 credit hours. If you are a CFA Institute member, CE credit for your participation in this programme will be automatically recorded in your CE tracking tool.

Please note that this article can contain technical language. For this reason, it is not recommended to readers without professional investment experience.

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