We take a market benchmarked approach to managing Currency Risk.
Currency hedging is conducted by our international investment manager, DWS International GmbH (DWS), and implemented using Derivatives such as forward foreign exchange contracts.
Our hedging policy is set using the market average hedging ratios of providers that make up at least 80% of KiwiSaver industry funds under management. The hedging benchmarks and ranges are re-assessed 6-monthly and adjusted as required. Compliance with the hedging policy is monitored by the Investment Committee each quarter.
The foreign exchange exposure targets are currently as follows:
Fund units When you deposit funds into (invest in) a KiwiSaver or investment fund, your money buys units of that fund. Units are a share of the fund’s assets (e.g.shares and bonds). The number of units you get when you make a deposit depends on the ...