facebookCould someone explain Fx risk: SGD hedged assets Vs SGD exposed assets - Seedly

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Anonymous

06 Jan 2024

βˆ™

General Investing

Could someone explain Fx risk: SGD hedged assets Vs SGD exposed assets

SGD hedged asssets: Eg. MSCI world hedged to SGD via fund etc.

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SGD exposed assets: Eg. STI etf, SG REITS

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Forgive my poor terminology πŸ˜…

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cctzjd

21 Jan 2024

Own time own target at Self Employed

Singapore exposed assets means the underlying stocks, property etc are mainly earning in SGD, have significant part of their earnings in SGD.

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SGD hedge means the underlying fund could be in USD (for example) and the fund house quoted you in SGD. the currency exchange is done back end so you do not have to exchange currency when you want to buy or sell.

hedging still have FX risk and there is a cost, just that you do not see it and the fund manager does it at his end.

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hope this helps

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