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Brandon Snow's picture
Submitted by Brandon Snow on

Hi Jim,

Thanks for the comment.

When I mentioned currency not being a core competency for fund managers I meant it isn't where mutual fund managers tend to create value for their clients. It has become a big risk when investing and is something we have to think a lot about.

Currency is a risk that has to be understood, quantified and controlled as well as possible and our team at Cambridge institutes an active hedging policy. We set our hedges on a monthly basis for all cross currencies and are notified, due to trading or performance, if our hedged position gets more than 5% above our targeted amount. We had been fully exposed to the US$ over the C$ for nearly four years. However, with the drastic move we have already seen, we want to reduce this risk exposure for clients and have since added some hedges. As always we will focus on the risks we are taking on when investing and ensure we are being compensated for the risk or reduce it as much as possible. 

Thanks for the question,
Brandon

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