Understanding Currency Overlay

July 23, 2010 | Greg Leonberger, FSA, EA, MAAA, FCA, Partner, Director of Research

As portfolios have expanded to include international investments, investors must be aware of the currency risk inherent in foreign assets. Currency overlay programs provide a mechanism to mitigate currency risk. This paper examines how currency overlay programs can be used to reduce the currency risk embedded in foreign denominated portfolio allocations.

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Greg Leonberger, FSA, EA, MAAA, FCA
Partner, Director of Research

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The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

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