What is currency hedging and how does it work?
Luke Smith joins 2CC Talking Canberra 1206AM. The Money Show aired on Friday 20 November 2020 and the topic: What is currency hedging and how does it work?
Financial Planner Luke Smith takes a a look at the topic of currency hedging. Like many people, you may have heard the term, but what does it really mean? Chances are that if you have overseas investments in your super, you may have some currency hedging already working for you. It can be complicated, so seek advice if you need to. Luke this week is joined by Chris Mac, Leon is on holiday this week.
Key highlights include:
- Should I feel nervous about ‘currency hedging’
- What is it exactly?
- Hedging currency on an exchange rate like a fixed interest rate on a home loan
- Can you use a mix of unhedged, hedged or paritally hedged positions in your investment portfolio?
- In what market is currency hedging more important to think about?
- Currency hedging provides control over exchange rate movement risk, so it’s a strategy that provides more certainty and reduces risk.
- What should you think about before you make a decision about currency hedging?
- Look into your super or investments, to see if there is hedging in place or not.
- What are the things that impact currency movements and therefore the value of your international investments?
- Why you need to think about currency hedging in terms of your on your own situation and needs – everyone will be different
- A free appointment offer to talk about your own financial planning issues. Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice about hedging investments?
Luke Smith at Envision Financial can help you set up a financial planning strategy to help you achieve your investment and retirement goals. We’re very pleased to let you know that we’ve returned to the office for appointments given Covid-19.
Envision 2CC offer: Your first appointment is at our cost. Make an appointment to confidentially discuss your own investment, super or retirement goals. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Luke will return to talk about financial planning on 2CC next Friday from 4.30pm. Listen live or visit our website again to catch up on the podcast. You can also check out our YouTube Channel at Envision Financial Canberra.