Why Currency Returns and Currency Hedging Matters

Research Paper
May 16, 2012
Preview
With the growth of international investing, the impact of currency movements continues to be of significance. All investors are exposed to currency risk when investing in equities abroad and adverse moves in exchange rates can dramatically impact their performance. Hedging currency exposure is one technique for taking currency risk out of the equation when investing in foreign companies. The MSCI Hedged Indices provide one way to measure the performance of currency hedged equities. Here we explore the effects of currency on foreign investments and how currency hedging can help investors who do not have a viewpoint on the direction of exchange rates.

Read the full paper

Provide your information for instant access to our research papers.

The content of this page is for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to recommend any product, tool or service. For all references to laws, rules or regulations, please note that the information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.