Latest from IPE Magazine – Page 748
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Features
Currency risk out of the closet
Many may not be familiar with the concept of a ‘currency benchmark’. It results from the explicit recognition of currency risk in a portfolio, and, for example, might be ‘World ex UK equities 100% hedged’. The ‘100% hedged’ is the key point here: the process of choosing benchmarks is in ...
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Features
Avoid the real high risk zone
Benchmark. The very word sounds solid and reliable. Obsessive attention to tracking error, though, perpetuated by the more emotive term ‘benchmark risk’, leaves the underlying structure unscrutinised. So while there is a belief that a small tracking error provides safety, little thought is given to the risk associated with the ...
