Perpetual fund seeks to minimise currency risk
Investor need to consider the impact currency moves have, when making global investment decisions, Perpetual global equities portfolio manager, Garry Laurence, believes.
Launching the Perpetual Wholesale Global Share Fund Hedged, Laurence said currency fluctuations have a "material impact" on international investment returns.
Laurence said the new fund would substantially hedge the currency exposure arising from investments in international shares back to the Australian dollar.
"With around 98 per cent of the world's investment opportunities located outside Australia, investors have the opportunity to access companies operating in different regions — and industries — than what they would traditionally find in Australia," he said.
"As a result of this, some investors and their advisers may be concerned about the impact of an appreciating Australian dollar, which can have both a positive and negative impact on their investment returns.
"We believe currency movements may have a material impact on equity returns and will be considered in the investment decision making process of this fund.
"This is why we have created the fund — to minimise the impact on investors' funds from any adverse movements in currency."
AUTHOR
Nicholas O'Donoghue
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