distribution hedge not out of money anymore, page-3

The upside is that BJT has reduced its capital hedge in Aug 2008 so that we benefit from a higher AUD NTA when JPY went up last year. The downside is they reset the capital hedge at higher rate....But overall we are better off.

You could argue that we would be better off if there is no capital hedge at all. But no one knows which way exchange rate is going to swing. When AUD increases against JPY, we would be glad that there is a capital hedge in place.