Investors pile into currency-hedged European equity

Consider the following: you come together with your investment committee, look at macroeconomic fundamentals, GDP growth trends and companies’ earnings forecasts, and you come to the conclusion that European equities are far more attractive than stocks elsewhere. However, you and your colleagues also agree that, with a rate hike in the US this year ever more likely and European monetary policy to remain loose, the dollar will come closer to parity with the euro. So what do you do? You buy currency-hedged share classes.

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