Hedging risks rethink

Retirement funds and other long-term asset managers are learning the cost of being complacent about short-term currency risks. Often using strategic asset allocations (SAAs) to build their portfolios, with reviews done only at three- to five- year intervals, currency risks related to foreign assets were often subject to medium-term views. Discussions about hedge ratios applied to foreign assets, or how to achieve higher efficiencies with currency hedge programmes, ranked only low on the