and distributed through authorized dealers. RBC Funds, PH&N Funds and BlueBay Funds are offered by RBC Global Asset Management Inc. Mutual funds are not guaranteed, their values change frequently and past There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please consult your advisor and read the prospectus or Fund Facts document before investing. RBC GAM reserves the right at any time and without notice to change, amend or cease publication of the information. Information obtained from third parties is believed to be reliable but RBC GAM and its affiliates assume no responsibility for any errors or omissions or for any loss or damage suffered. Perfect Hedge: A perfect hedge is a position undertaken by an investor that would eliminate the risk of an existing position, or a position that eliminates all market risk from a portfolio. RBC GAM takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when provided. It is not intended to provide legal, accounting, tax, investment, financial or other advice and such information should not be relied upon for providing such advice. (RBC GAM) and is for informational purposes only. This has been provided by RBC Global Asset Management Inc. This reduces the potential that a change in exchange rates will affect the return on the investment. Options – For a fee, options give the holder the right, but not the obligation, to exchange one currency for another at a set rate for a certain period of time.Keep in mind that the investment will not benefit if currency fluctuations work in its favour. The value of this contract will fluctuate and essentially offset the currency exposure in the underlying assets. Forward contracts – The portfolio manager can enter into an agreement to exchange a fixed amount of currency at a future date and specified rate.There are two main ways portfolio managers manage foreign currency risk : The interplay between baskets of currencies is sometimes referred to as a natural hedge. In a diversified portfolio, currency movements tend to even out.Ī well-diversified portfolio has exposure to many different currencies. Difference between S&P 500 Index return in C$ and S&P 500 Index return in US$.
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