FX for the long run?

This financial report explores the strategic role of foreign exchange (FX) hedging in long-term investment portfolios. 

• Lower hedge ratios may be preferable over extended horizons, especially when factoring in hedging costs.  
• Currency hedging significantly reduces risk for global bonds but is more complex for equities.  
• Safe-haven currencies (USD, CHF, JPY) can offset equity market downturns, while emerging market currencies present higher costs and challenges.  

For a deeper analysis of FX hedging strategies and risk management, read the full report.