Good morning Brandon,
We report the net of fee returns of investments held to clients in C$. Once the C$ bottoms in the next year or two, it will be important for fund managers to have the competency in place to at least partially hedge the eventual rise of the C$, otherwise, particularly in global or U.S. funds, performance will be mediocre or poor. Some fund managers do this already and have either gained the competency or hired the expertise (contracted) to address the significant swings in currency. Advisors/mutual fund purchasers cannot do this and it must fall onto the fund managers/fund companies. As usual, there will be winners and losers. Even a very unsophisticated hedge policy will take some of the pain away in owning a global product when the C$ starts to rise. The good news is that Cambridge has time to think about it and hopefully institute a policy to address currency. Using cost, or lack of knowledge/expertise is not a good reason in 2015. It was ok to not have policy in 2000 as the C$ worked it's way lower, but it still hurt over the next 10 years as the dollar went from about $0.62 to $1.10. I am hopeful to not have a repeat over the next 10-15 years.