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‘Currency returns tend not to be correlated with the returns of other asset classes such as equities. This means the effect of adding active currency on the total risk of the client’s overall strategy will typically be low’ Mark Fitzgerald, Barclays Global Investors |
Fruitful sources of return
01 August, 2003
Whether because it is a useful investment strategy in its own right or because it is so effective in balancing an equity-dominated portfolio, currency management opens up options for the investor.
The broad decline in equity markets during the past few years has led many investors to diversify their portfolios, with some looking at the opportunities available in alternative investments. Although equity market neutral funds have become one of the most popular investor strategies, there is also a wide array of other types of alternative investments to choose from. One such area that certainly deserves consideration is currency management.