International shares: To hedge or not to hedge?

On 26 October 2009, we published a Blog article titled “International shares: To hedge or not to hedge?”.

It included the chart below to demonstrate that while currency movements are very volatile in the short to medium term, and therefore have a significant impact on the returns from international shares, over the long term these movements tend to “wash out” and are expected to have little or no impact on long run, real (i.e. after inflation) investment returns.

On this page, we will regularly update the chart. For further explanation on its interpretation and message, refer to "International shares: To hedge or not to hedge?".