Building better currency portfolios

In our latest Topic of Interest paper, we present our philosophy on managing currency and provide a framework for how investors can create a solution that fits their objectives and potentially improve total portfolio outcomes. While customization will certainly be a consideration, we believe a currency portfolio with 1/3 unhedged, 1/3 hedged, and 1/3 currency beta is an appropriate starting point for many institutional investors that may produce better long-term outcomes than the embedded currency portfolio.

This paper is the last of a three part series, and it builds on topics already discussed. The first two papers, The Cost of Not Hedging Foreign Currency and A Different Approach to Currency Investing, can be viewed here.