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Strategic and active currency management

Explore the role of currency in investment portfolios and the two important and distinct, decisions in the management of currency exposure.

Michael Sager and Giuseppe Pietrantonio Jan. 18, 2024 5-minute read

The role of currency in investment portfolios can often be misunderstood. That’s why we aim to provide clarity. There are two important and distinct decisions in the management of currency exposure:

First, and most importantly, is the strategic decision on how much inherited currency exposure to hedge. This decision should be included in the investment policy of each institution.
Second, and completely independent of the strategic decision, is whether to allocate to a tactical, return-seeking active currency strategy.

Strategic and active currency management (PDF, 230 KB) Opens in a new window.

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Written by

Michael Sager, PhD

Managing Director and Head, Multi-Asset and Currency Management

CIBC Asset Management

Giuseppe Pietrantonio, CFA, MBA
Associate, Client Portfolio Manager, Multi-Asset & Currency, CIBC Asset Management

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Strategic and active currency management

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