My companies pension provider seems to have decided to limit the amount of funds I can invest into ,
I notice 4 of the 5 equity funds they are offering are currency hedged.
From the data i've gleaned on the internet currency hedging over the long term is a waste of time but in the short term it might even out fluctuations in portfolio value.
To me this seems like charging the suckka consumer a 0.2% premium for currency hedging so they don't get frightened by short term changes over a couple of months/years to their pension value.
Sat in the UK with brexit on the cards further devaluation of the pound seems likely, interest rate rises to support the currency seem untenable, most mortgages sold in the last 10 years seem to assume a maximum of 6% interest on "affordability" calculator in worst case scenarios , so hedging feels wrong when i'm investing in the USA, Europe and Australasia as compared to this island in the corner of the atlantic .
I will be asking why my fund options are being limited and will see if my firm will give me my match and pay into my self invested personal pension rather than my company one.
Anyone with experience of currency hedged funds and spot what i'm missing ?