Sentences with phrase «does currency hedging»

Why does currency hedging underperform so much?

The stronger dollar certainly reduces earnings for some companies, especially if they do not do any currency hedging.

«We don't do any currency hedging,» reports Hugh Smith, chief investment officer at the Welch Group in Birmingham, Ala. «If I had a short - term investment mind - set, hedging currency risk might make sense.»

Not exact matches

Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.

In effect, they'd begun doing their own currency hedging.

For simplicity's sake, and so the company doesn't have to deal with currency hedging, they decided to sell the scanner through the website at a single retail price of US$ 579, even though, as Cox observes, they're over-pricing in some markets and underpricing in others.

This discussion also does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the U.S. federal income tax laws, including, without limitation, certain former citizens or long - term residents of the United States, partnerships or other pass - through entities, real estate investment trusts, regulated investment companies, «controlled foreign corporations,» «passive foreign investment companies,» corporations that accumulate earnings to avoid U.S. federal income tax, banks, financial institutions, investment funds, insurance companies, brokers, dealers or traders in securities, commodities or currencies, tax - exempt organizations, tax - qualified retirement plans, persons subject to the alternative minimum tax, persons that own, or have owned, actually or constructively, more than 5 % of our common stock and persons holding our common stock as part of a hedging or conversion transaction or straddle, or a constructive sale, or other risk reduction strategy.

And as they do, U.S. investors should preferably gain that exposure via instruments that seek to hedge the foreign currency impact, as dollar strength means equity gains in local currency terms will be muted when translated back into U.S. dollars.

We do, however, anticipate entering into foreign currency exchange contracts for purposes of hedging foreign exchange rate fluctuations on our business operations in future operating periods as our exposures are deemed to be material.

Finally, I suspect many investors will use these hedged international stock funds out of a belief that they know how the dollar will do against currencies like the euro.

I follow a technical model to make these decisions, and I'm a firm believer that when it comes to currency hedging, the average investor should not try to do it.

Currency hedging may have been a smart thing to do a few years back.

And when their local currency appreciates significantly, the fully - hedged GEM model does not perform that much better.

These include currency risks — in the form of company - level mismatches as EM issuers generally do not fully hedge hard currency borrowings — and insolvency risks such as more uncertainty in financial restructuring because of inconsistent priorities and a lack of focus across jurisdictions.

For example: If I'm a U.S. - based investor and I buy a BMW bond and do not hedge the currency, every single coupon I receive, including the repayment at the bond's maturity, will be subject to the FX rate that prevails at the time.

State Street does offer separate exposure to corporates and government debt, but neither the SPDR Barclays International Treasury Bond ETF (BWX) nor the SPDR Barclays International Corporate Bond ETF (IBND) are currency hedged.

And although fixed - income ETFs are not always currency hedged, both IFIX and IGVT do offer that feature as well, which Noack describes as «critical.»

«Very simply, if as a investor with USD liquidity, I buy a bond denominated in euro and I do not hedge the currency, I do not have fixed income; I have variable income.

The difference between them is that Global Value hedges its currency exposure and Global Value II does not.

Does it make sense to invest in a currency hedged fund?

Do you hedge for currency risks?

Or do you bear potential currency risk by choosing not to hedge?

Four months ago, you couldn't buy a Canadian - listed S&P 500 index ETF that did not use currency hedging.

This is why I don't recommend currency hedging.

I have no view on the direction of currency movements, but I do prefer unhedged equity ETFs, because currency diversification can lower the volatility of a portfolio, and the cost of hedging is a long - term drag on returns.

They all have a large - cap option that includes currency hedging, plus Scotia iTrade and Virtual Brokers also offer the iShares US Fundamental Index (CLU.C), which does not use hedging.

My model portfolios recommend US and international equity index funds that do not hedge their currency exposure.

Vanguard does not appear to offer currency hedged products in London while iShares does.

All three brokerages offer the iShares International Fundamental (CIE) which does not use currency hedging and would be a good choice as a core holding.

In other words, the currency fluctuations a Canadian investor is exposed to for a foreign stock (or ETF) traded in an US exchange (that does not hedge its currency fluctuations) is not the CAD / USD rate.

If you don't need currency hedging, US - listed ETFs might be the better choice.

The loonie rose 6.6 per cent against the U.S. dollar over the past six months, as it does not hedge foreign currencies back to the Canadian dollar.

Commodities and currencies are considered riskier investments, and they can do even more to hedge against inflation.

@CC: Why does investing in investment - grade foreign bonds (with currency hedging) raise the risk of a portfolio?

Finally — and most important — it does not use currency hedging, which makes it almost unique in Canada.

However, as S&P explains: «It is important to remember that since only beginning - of - period balances are hedged, the index does not assume a perfect hedging of currency movements.»

While iShares hedges currencies in its MSCI EAFE Index Fund (XIN), it does not do so with another of its popular international funds, the MSCI Emerging Markets Index Fund (XEM).

Several of the Advantaged ETFs also use currency hedging, which adds yet another expense that doesn't show up in the MER.

Not only have US stocks significantly outpaced Canada and the rest of the world (albeit with low returns by historical standards), but the US dollar appreciated more than 1 % annually, which boosted returns for Canadian investors who did not use currency hedging.

XWD holds approximately equal amounts of US and international equities (plus a trivial allocation to Canada), but unlike XSP and XIN it does not hedge currency.

I offered a couple of my own: an international equity ETF that doesn't use currency hedging, and an international bond ETF.

Interestingly, none of these ETFs use currency hedging, since doing so would introduce a new source of volatility and completely change the profile of the funds.

They do not hedge their currency exposure.

As an individual investor I think there is very little gain in trying to either hedge currency (because of cost) or predict it (because no one can do it accurately).

Do the published managment fees include the cost of currency hedging for the US and International funds, or is that a separate cost taken from the ETF's assets?

Investors seeking to limit the effects of currency risk on their portfolios have a number of hedging strategies to consider, but what to do depends on investment horizon.

With these ETFs, investors don't need to figure out when and how much to hedge foreign markets as they are designed to dynamically adjust to changing currency environments.

However, most currency classes for most funds do not involve hedges, so in most cases this does not apply.

Alex: In my opinion, you don't need a hedge for VEA because though it is denominated in USD, it holds stocks denominated in euros, yen and pound, so it is really only affected by the gyrations of the C$ against this basket of currencies.

The International Large Cap Growth Portfolio does not hedge foreign currency risk.