Mark Astley, Co-CEO of Millennium Global discusses the dangers of doing nothing when it comes to currency management.
- The impact of currency exposures on international investments can be large in both return and risk terms. History is filled with examples of large negative impacts from unmanaged currencies.
- “Doing Nothing” is the highest risk option.
- Currencies add risk to an international portfolio with no additional expected return. In no other asset class would an unrewarded risk be left unmanaged.
The views and opinions expressed in this content are those of Mark Astley, and do not necessarily represent the opinions of Millennium Global or any of the funds/accounts it manages or any of its Portfolio Managers.
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