FX Markets

More UK pensions actively manage currency exposure

NEWS

Mercer Investment Consulting reported that the number of UK pension funds investing in active currency management rose to 8% in 2006 from 7% the previous year. By contrast, only 4% of pension funds in continental Europe and the Republic of Ireland are investing in active currency management.

The survey said UK pension funds are placing an increasing emphasis on active currency management, along with tactical asset allocation, in order to diversify investment risk. In 2006, 25% of UK funds hedged

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