In this much-requested episode of Money Made Simple, Jennie and Liv (finally!) demystify hedging, the financial safety net that can help protect your KiwiSaver and investment balances from foreign currency fluctuations. They explain what it means in a general sense (outside and inside of investments), why fund managers use it, and when being “hedged” or “unhedged” can make a difference to your returns.
Whether you’re investing for the long term or just want to sound smart next time someone mentions “hedged vs unhedged funds,” this one’s for you. This episode covers:
• What hedging is and why it exists in the world of investing (and elsewhere)
• Simple, everyday examples of hedging (like fixing your mortgage rate or locking in travel exchange rates)
• How hedging works within global investments and KiwiSaver funds
• The pros and cons of being hedged vs unhedged when it comes to investing
• How Simplicity uses hedging to help protect members’ investments
By the end of this episode, you’ll hopefully understand how hedging helps manage volatility (but - plot twist - only in one area), why it's relevant to KiwiSaver members, and how it quietly works behind the scenes without you needing to lift a finger.
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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.
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