Australia-based Perpetual has introduced a fund that will enable investors to decrease the impact of fluctuations in Australian dollar on their global investments.
The new fund, called Perpetual Wholesale Global Share Fund Hedged, will also help investors in making decisions about the international investments.
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Perpetual in a statement said that the fund will adopt a bottom-up approach to stock selection, where the decision to buy or sell is based on fundamental quality and valuation.
The fund will hedge the currency exposure arising from investments in international shares back to the Australian dollar.
The portfolio is constructed within a framework that is independent of the benchmark in terms of stock and sector weights, the company added.
Perpetual global equities portfolio manager Garry Laurence said: "As a result of this, some investors and their advisers may be concerned about the impact of an appreciating Australian dollar, which can have both a positive and negative impact on their investment returns.
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By GlobalData"We believe currency movements may have a material impact on equity returns and will be considered in the investment decision making process of this fund. This is why we have created the fund – to minimise the impact on investors’ funds from any adverse movements in currency."
