Sentences with phrase «local currency exposure»

Currency Volatility The next question for most investors is: What about the increased volatility associated with local currency exposure, particularly in the case of fragile emerging market currencies?

But it is comforting to know that the local currency exposure should add a long - term incremental return, rather than eat away at the attractive real yield through depreciation.

Not exact matches

Our clients» international stock exposure is held in local currencies rather than hedged to the U.S. dollar.

As do foreign investors in local currency debt that want exposure to domestic credit and interest rates, but not exchange rates, as well as other non-residents who are willing and able to take on exchange rate risk.

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.

Baked into the returns of every overseas stock or bond is exposure to its local currency.

«Many investors are looking for exposure to emerging markets, but do not have the risk appetite for emerging market equities or emerging market local - currency debt,» said Fijalkowski.

We are currently focused on directional valuation opportunities in three primary areas of the global bond markets: developed - market currencies, US Treasuries and local - currency exposures in emerging markets.

The fund invests, under normal circumstances, at least 80 % of its net assets plus any borrowings for investment purposes (measured at the time of purchase)(«Net Assets») in sovereign and corporate debt securities of issuers in emerging market countries, denominated in the local currency of such emerging market countries, and other instruments, including credit linked notes and other investments, with similar economic exposures.

The reverse has been true, however, for Canadian dollar - based investors: exposure to global equities in their local currencies has resulted in higher volatility — not less — than the same exposure held in Canadian dollars.

While global equities are historically more volatile for U.S. dollar investors than in local currency terms, the Canadian dollar's procyclical nature has provided an almost natural hedge that would have faded if foreign currency exposure had been hedged (see the chart below).

JPMorgan Government Bond Index - Emerging Markets Global Diversified Index (Unhedged) is a comprehensive global local emerging markets index, and consists of regularly traded, liquid fixed - rate, domestic currency government bonds to which international investors can gain exposure.

More importantly, investing into Chinese bonds adds diversification benefits to a portfolio through the exposure to local rate, credit and currency.

TDB904 hedges the currency exposure for a small extra fee of 0.15 % and is designed to provide the same total return as the S&P 500 in its local currency, in this case the US dollar.

Though our local currency holdings are under benchmark weight at this time, we added back exposure to the Mexican peso and maintained an overweight in the Polish zloty.

The iShares J.P. Morgan EM Local Currency Bond ETF provides exposure to bond issues across several emerging markets — a riskier proposition on its face than investing in developed countries with better credit ratings, which helps explain the high yield.

Thus, Chinese bonds do not only provide the portfolio diversification through the exposure to local rate, credit and currency, they would also be a good hedge to the global fixed income portfolio.