Sun Life Global Investments has announced new currency hedged series for two of its funds.
Series FH, OH, and IH, which were launched for the Sun Life MFS US Growth Fund and Sun Life MFS US Value Fund, are expected to provide flexibility for Canadians to invest in the US equity market while hedging their exposure to US currency.
Adverse currency movements are an inherent threat to portfolios diversified with foreign components, and an important part of client protection is the mitigation of exchange rate volatility risk.
"Over recent years the Canadian dollar has been falling against the US dollar and Canadian investors have benefited from being unhedged," noted Sadiq S. Adatia, chief investment officer of Sun Life Global Investments. "However, with the gains the Canadian dollar has made recently, a hedging strategy may become a more attractive approach for investors."
The new hedged options FH, OH, and IH shall be added to the current AH option and accompany each of the fund’s non-hedged series counterparts.
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