long term effects of currency hedging, page-2

Hedging is stupid

Hedging something like property fund returns is a lose-lose situation for investors. It only makes money for spivs.

If you want to invest in property outside Australia, then expect the returns from the investment to vary somewhat with changes in exchange rate levels. If that diversification of risk and return does not appeal to you, then dont invest outside Australia.

Hedging is more likely to lead to spectacular failures and not to stability of returns.

The only sort of hedging these funds should be doing, is, if their properties are in Europe, they should obtain their mortgage loans in Europe. or wherever.