Multicurrency Commentary 1st Quarter 2009
We believe currencies are a separate asset class and an important diversification tool for a well balanced portfolio. The recent financial crisis underscored the importance of currencies as a separate asset class, as the table below highlights. Many investors have viewed their foreign stocks as the source of their currency diversification, however, although currencies had their own troubles as the dollar rallied in recent months, foreign stocks generally did worse. We view our strategy as a long-term asset allocation building block that also offers our clients a tool for diversification. In that context, our strategy continues to perform its role admirably.