We mentioned in our Market Watch Weekly dated January 8th, 2016, that "we believe that the Canadian Dollar will migrate back to the 75-80 cent range over the coming year, prompting us to begin hedging the currency risk of our US assets". We're not the only ones adopting this strategy. In a report dated January 20th, 2016, Dagmara Fijalkowski, Senior Vice President and Senior Portfolio Manager & Head, Global Fixed Income and Currencies at RBC Global Asset Management (Toronto and London), supports our belief that "investors should think about gradually reducing their foreign currency exposure during this period of CAD weakness and consider allocating new investments to currency-hedged strategies". Please click on the link below to access the full report.
Dagmara Fijalkowski, MBA, CFA
Senior Vice President and Senior Portfolio Manager
Head, Global Fixed Income and Currencies (Toronto and London)