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Article: News: Currency hedging keeps Dutch funds in the black.
- Article from:
- epn: European Pensions & Investment News
- Article date:
- July 31, 2006
CopyrightCOPYRIGHT 2006 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Christine Senior
Dutch pension funds returned 0.4 per cent in the first half of 2006, according to data from WM Performance Services.
The performance of the Dutch Pension Fund Index highlights the value of currency hedging: with the US dollar's 8 per cent depreciation, the unhedged performance was -0.8 per cent over the same period.
Returns took a hit from the May turbulence in the equity markets. Equities lost 5.2 per cent during the month, overturning the gains of the previous months, to give a zero return over the entire first half.
Fixed income also performed badly, with a negative return of -3.3 per cent. Due to the ...