Why would you remove foreign currency from a portfolio? to make it better.

The uncertainty and volatility associated with multiple currencies adds significant risk to the global equity portion of your portfolio. By selecting currency-hedged funds for just half of your global investments, you can reduce risk and volatility in your portfolio.

Currency risk being ignored: Canadians are saving for retirement in C$ However, the initial FX rate on their foreign investments is unlikely to be the same as the exit FX rate.

The currency rollercoaster: Most investors do not follow currency exchange rates. Recent global currency swings have been dramatic. An unhedged position can be impacted significantly.

A smoother ride: An all or nothing approach can mean drastic results. The green line above demonstrates the power of taking a neutral currency position.