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.