Flexible approach leads to success in fixed income global dollar market

Some of the best performing funds over the last three years in the fixed income global dollar-based asset class have been those who had a flexible approach to currency hedging, moving in and out of positions as the market dictated. A large part of the difference in performance year-on-year between funds in this asset class, between 1 November 1999 and 1 November 2002, can be attributed to the fund style. Some fixed income global dollar-based funds hedge against currency movements and so perform better when the dollar is strong. Others do not hedge and perform better when the dollar is ...