Hedging its Bets

It’s difficult to box this fund in. With a minimum 65 per cent in equity, it falls into our ‘Hybrid: Equity oriented’ category. On the other hand, it could have the appearance of an asset allocation fund. The reason being that the hedged portion of the fund can range between 0-100 per cent of the total equity exposure. So a 60 per cent equity allocation completely hedged would effectively result in no equity (0%) allocation. Or, more realistically, a similar allocation hedged up to 25 p

This article was originally published on June 26, 2012.