Etheios, the independent investment management consultancy, has welcomed the FSA’s proposal of allowing currency hedging on unit classes for unit trusts and OEICs. This will allow fund managers to run one pot of assets, which can be quoted in different currencies, without the client being subject to currency fluctuations.
“We welcome this increase in flexibility, but strongly advise that fund managers should be aware of the potential risks before they dive in,” says Mark Seaman, the principal consultant at management consultants Etheios.