Don’t forget about base currency risk
Standard practice among investors is to hedge away foreign currency risk in fixed-income portfolios. But that could increase another sort of currency risk that is often missed.
Currency
-
-
Multi-asset funds – why are they so popular?
Multi-asset funds have been a long-standing investor favourite. But why do Europe’s fund buyers actually resort to these one-stop shop products?
-
How low can sterling go?
Sterling took another pounding on Tuesday morning after the UK Parliament approved the Article 50 bill – but with at least two years of negotiations ahead, could the currency fall even further?
-
Three reasons why the Mexican peso is undervalued – H2O Asset Management
In this short video, H2O Asset Management’s Peter Nodwell gives three reasons why the Mexican peso is the most undervalued investment opportunity in 2017.
-
ANALYSIS: ‘Clean’ Brexit provides clarity but many challenges
Sterling’s reaction over the weekend to leaked portions of Theresa May’s speech on the UK’s Brexit plans, and its general trend since 23 June, meant few expected much strength from the pound on Tuesday.
-
ANALYSIS: 2017’s key currency conundrums
The massive moves in the renminbi in the past few days have wrong-footed China bears and underscored yet again the size of the role currencies are likely to play in investment returns this year.
-
China’s currency a rising concern in 2017
RMB depreciation is posing a risk for both equity and fixed income investment.
-
OPINION: Why the dollar bulls are mistaken
The dollar has rallied in recent days as investors believe stronger US GDP growth and Fed rate hikes will push the greenback up. But markets are ignoring the forces that are likely to drag the dollar down in the longer term.
-
Japan reports surprisingly strong GDP growth
Japan has reported third quarter annualised GDP growth of 2.2%.
-
Is the Trump inspired dollar slide over already?
As Donald Trump’s win in the presidential election became inevitable overnight, the dollar fell against other major currencies but this was quickly reversed following his conciliatory victory speech.
-
Trump or Clinton – how should you position your portfolio?
Fund managers and fund selectors alike are haunted by the prospect of Trumpian rule, but still deem a Clinton victory more likely. However, it’s paramount investors don’t leave themselves too exposed to the consequences of a Trump triumph.
-
Pound plunge prompts battle between Unilever and Tesco
Unilever shares slid this morning as news of a fall-out over price increases with one of its biggest customers spread.