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Aon says DC schemes need to take a close look at currency hedging

LONDON (10 May 2017) - Aon plc (NYSE:AON), has released a new investment paper, ‘Does Currency Hedging Matter in DC?’ which looks at the issues confronting defined contribution (DC) scheme trustees as they consider the implications of currency risk in their schemes’ investment approach.

Issues the new paper looks at include the availability of DC-friendly currency hedged funds, questions around the potential added costs to members and the factors which should influence trustee decision-making.

Joanna Sharples, principal consultant at Aon Hewitt, said:
“With DC schemes increasingly exploring investment options on a global basis and using overseas assets both to seek returns and to diversify, it is inevitable that there is the potential for members to be more exposed to exchange rate fluctuations.  That presents schemes with the dilemma of how to protect themselves against any adverse currency movements.

“In addition to that, in this era of political change we believe that currency markets will be increasingly volatile over the next few years rather than less. So now is the time for DC schemes to give this issue serious consideration, to review their options and – if needed – take action.”

‘Does Currency Hedging Matter in DC?’ Is available at:    

Media Contact
For further information please contact:
Colin Mayes                                           Anelia Fikiina
Aon Hewitt                                             CNC
01372 733689                                         020 3219 8887         

Notes to Editors
About Aon

Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
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