The focus is on exposing the portfolio to stronger currencies rather than necessarily hedging back into the A$ (or US$ for US$ denominated portfolios). Experience has shown that currencies can have long and persistent trends and we will attempt to identify the drivers thereof and then take a stance. However, we are reluctant to simply be a trend follower and require that the fundamentals and technicals are aligned. Our currency views are assisted by a combination of our stock research (eg. export competitiveness of industries at current exchange rates), and an examination of fundamental macroeconomic trends. The views are not formalised into specific currency targets.

Where there have been major currency movements, or where we perceive currencies to be over or undervalued, we may look for corporates whose operating environment has been distorted by the currency as part of our search for undervalued or over priced stocks.