JAMES HOLT, head investment specialist at Perpetual, explains how currency movements can significantly influence global investment returns for Australian investors.

He outlines the key difference between hedged and unhedged options, and how investors can choose whether to retain exposure to foreign exchange movements or focus solely on the performance of the underlying stocks.

Here’s an excerpt from the video podcast:

“With global portfolios, especially from an Australian investor’s perspective, our currency can be quite volatile.

"We want to give investors the option of being fully hedged against that currency risk or unhedged.

“With an unhedged fund, you will get the return of the underlying stocks, but you also get the movement of the currency as well.

“When you’ve got a global fund that’s hedged, it’s simply removing the currency risk from the portfolio.”

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Learn more about Barrow Hanley Global Share Fund

Learn more about Perpetual

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This podcast has been prepared by Perpetual Investment Management Limited ABN 18 000 866 535, AFSL 234426 (PIML), as the issuer of the Barrow Hanley Global Share Fund (Fund) and Barrow Hanley Global Share Active ETF (ETF) (ASX: GLOB).

Barrow, Hanley, Mewhinney & Strauss LLC (Barrow Hanley), Australian financial services authorised representative number 001283250, is a subsidiary of Perpetual Limited and a related party of PIML. 

This podcast is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider with a financial adviser whether the information is suitable for your circumstances. 

The product disclosure statement (PDS) for the Fund and ETF, issued by PIML, and the ETF's other periodic and continuous disclosure announcements lodged with the ASX should be considered before deciding whether to acquire, dispose or hold units in the Fund or ETF. The Fund’s and ETF's PDS and Target Market Determination can be obtained by calling 1800 022 033, or visiting our website www.perpetual.com.au.This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PIML does not warrant the accuracy or completeness of any information provided by a third party.

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of, or any return on an investment made in the Fund or ETF or the return of an investor's capital. Past performance is not an indication of future performance. All investing involves risk including the possible loss of principal.