Axa Property Trust introduces hedging strategy

Axa Property Trust has started using hedging techniques in a bid to reduce NAV volatility. ...

Axa Property Trust has started using hedging techniques in a bid to reduce NAV volatility. Manager Martin McGuire has begun using equity hedging techniques for the first time on the £106m vehicle. Last week the company bought a forward for the sterling equivalent of €40m with the potential termination date of the vehicle in 2015. The purpose of the hedging instrument is to reduce volatility on the NAV arising from fluctuations in the euro and sterling exchange rate and locking in significant foreign exchange movements.