Hi Jim, thank you for taking the time to read the FX blog and for your inquiry.
As you would expect, the domestic-oriented Signature Canadian fund has a different neutral FX hedge target (policy) compared to the Signature global fund. As outlined in the blog, many things are taken into account to arrive at the appropriate neutral hedge targets for our funds such as investor expectations, asset correlations, etc. The neutral hedge ratio is not static and may change over time as underlying factors like cross asset class correlations change.
The Signature Canadian fund currently has a 50% neutral anchor. While we actively manage the hedge level around that 50% policy target, it would take exceptionally high conviction to see our hedges reach the extremes of the allowable parameters (0-100%). Conversely, the Signature global fund is set with a 0% neutral hedge target (again, based on the outcome of our quantitative and qualitative assessment). Hedges for this fund are implemented as we develop a view on a particular currency exposure within the fund, and will rise and fall based on the conviction of our view. Similar to the Canadian equity fund, it would take an extremely high degree of confidence to take the hedge for any currency all the way up to 100%. We typically adjust our hedge positions in small, measured increments.