Currency Risk. If the AIF holds assets denominated in foreign currencies, it is exposed to direct currency risk to the extent such foreign currency positions are not hedged. Falling exchange rates cause the value of foreign currency positions to decline. Conversely, the foreign exchange markets also offer opportunities for profit. In addition to these direct currency risks, indirect currency risks may arise. Internationally active companies are susceptible to exchange rate movements to varying degrees, and these can indirectly affect the value of investments in these companies. The costs and any losses arising from currency hedging transactions reduce the performance of the AIF.
Appears in 4 contracts
Samples: Trust Agreement, Trust Agreement, Trust Agreement
