Russell Investments has proposed a new approach, known as Conscious Currency, to manage currency exposure. The approach involves a staged process, in which, investors select an appropriate benchmark to describe the currency markets as a whole. The investors will model the international asset markets on a hedged basis and determine an allocation policy, including possible exposure to the currency markets, as per the new approach. The move does not involve exposing the portfolio to any new asset class or exposure set, while it will align the portfolio more directly with the described neutral currency position.
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