Monetary easing has been a key theme in major economies such as Japan, the US and now the eurozone, bringing with it the threat of rapid currency weakening and potential impacts on your investments.
Currency hedged share classes have developed as a way of neutralising the currency risk of an investment, designed to combat the hit you take by converting returns from a weak foreign currency back to sterling.
Europe could be the next boom in currency hedged share classes, with fund managers reportedly preparing new ranges in response to swelling demand. This follows a proliferation of Japanese currency hedged share classes. But has the argument for currency hedging all played out and is it worth the cost?