@article {Guo1, author = {Helen Guo and Laura Ryan}, title = {Practical Applications of Currency-Hedging Optimization for Multi-Asset Portfolios}, volume = {6}, number = {3}, pages = {1--4}, year = {2019}, doi = {10.3905/pa.6.3.295}, publisher = {Institutional Investor Journals Umbrella}, abstract = {How should multi-asset investors hedge their foreign currency risks? In Currency-Hedging Optimization for Multi-Asset Portfolios, published in the 2017 Multi-Asset Special Issue of The Journal of Portfolio Management, authors Helen Guo and Laura Ryan (both of PIMCO) demonstrate the advantages of currency-specific hedging versus uniform hedge ratios or asset-specific hedging. This constitutes a notable advance in the published literature on this subject, which has not generally considered the different risk/return characteristics of various currencies and has focused mostly on the United States. In this article, the authors compare currency-specific hedge ratios, uniform hedge ratios, and asset-specific hedge ratios for multi-asset (equity and bond) portfolios in three base currencies: the Australian dollar, the US dollar, and the Japanese yen.TOPICS: Portfolio construction, VAR and use of alternative risk measures of trading risk}, issn = {2329-0196}, URL = {https://pa.pm-research.com/content/6/3/1.1}, eprint = {https://pa.pm-research.com/content/6/3/1.1.full.pdf}, journal = {Practical Applications} }