To hedge or not to hedge

It's time to consider the currency impact on your international portfolio.

Summary: When the Australian dollar is historically strong or weak, it’s easier to decide whether or not to hedge international investments. At present, with the dollar trading halfway between recent extremes, it’s worth considering the currency effect as well as tax and cost effectiveness, simplicity and diversification.

Key take-out: As investors, we don’t have to take an all or nothing position. A 70/30 unhedged to hedged ratio makes sense.

Key beneficiaries: General investors. Category: Shares.


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