Currency risk needs to be actively managed, says CI's Eric Bushell

Signature team's CIO remains wary of weakening euro.

Sonita Horvitch 10 June, 2015 | 5:00PM

Eric Bushell, chief investment officer at Toronto-based Signature Global Asset Management, says there is a need for investors to focus on the impact on their portfolios from shifts in foreign-exchange rates.

"Some countries have moved aggressively to help reduce the external value of their currencies, so as to stimulate exports," he says. "The moves in foreign-exchange rates can be sizeable and have an impact on portfolio returns."

The Europeans, for example, says Bushell, "have exhausted the traditional monetary-policy measure of lowering interest rates." He points out that the European Central Bank's policy rate is already in negative territory.

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Sonita Horvitch

Sonita Horvitch