Mitigating Currency Risk:

Strategies for
International Portfolios
 refers to the potential for due to fluctuations in
exchange rates.
International investors must be aware of this risk and implement strategies
to mitigate its impact.
Hedging Techniques

Various such as
and
can be used to protect against adverse
currency movements. These strategies
help to minimize the impact of
exchange rate fluctuations on
international
portfolios.
 investments across different currencies can help reduce the impact
of currency risk. By holding a mix of, investors can offset potential losses from
adverse exchange rate movements.
Passive Currency Hedging

Passive currency hedging involves using

or

to
automatically mitigate currency risk within
an international portfolio. This approach
can provide a simple and cost-
effective solution for investors.
Active Management

Active currency management

involves making to take
advantage of currency movements.
Skilled
can actively adjust
currency exposure to enhance
portfolio returns and mitigate risk.
Impact on Returns
Currency risk can have a significant
impact
on for international
portfolios. By effectively managing
this risk, investors can improve the and
of their returns.
International investors must also consider related to
currency hedging and management. Compliance with and
is crucial for effective risk
mitigation.
Conclusion

Mitigating currency risk in

international portfolios requires a
that combines
, ,
and
. By addressing currency
risk effectively, investors can enhance the
of their portfolios.
Thanks!