Swiss & Global warns against unhedged holdings

Stephan Mueller believes currency hedging is a necessity, with foreign exchange movements capable of eroding metal investments overnight

Swiss & Global Asset Management is cautioning investors in precious metals funds they risk eroding returns if unhedged against currency fluctuations. Stephan Mueller, S&G’s executive director of product management and development, says an unhedged sterling investor in bullion beat a hedged counterpart by 43.6% since 1 January 2008. But he warns the opposite movements could damage unhedged sterling investors as significantly. “Foreign exchange moves can be very destructive, and their effects can kill any benefits of the investment. Currency hedging should not be a privilege. Drops...