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This post has been edited by j0nn: Apr 1 2019, 03:18 PM

When you mean concentrate on stock performance, you mean on KLSE only? How would one get exposure to oversea stocks, without fx risk?

US dollar was strong against sterling (the shaded areas), the
hedged share class underperformed the unhedged share
class. Where the US dollar was weak against sterling, the
hedged share class outperformed the unhedged share class.

Chart 2 below gives an example of how this has worked with the
Templeton Global Total Return Bond Fund. While for any short
period of time one or the other will outperform, over the last five
years the total return of the two share classes has been fairly similar.



When you say there are costs for hedging, I assume you mean administrative costs? Given that in the long term the returns may be similar, what would be the reasons one would want hedging?

1, because it's not cost free.
2, from the franklintempleton article, hedged class may also underperform (even to negative region in their sample) in the short term.

Would I be wrong to say that, hedging basically limits potential downside risk due to fx, but it also limits the upside potential?

I have a high risk portfolio on SA so I can into diversify into global markets. Since I'm aware that there's market risk and fx risk, I simply.... don't put all my eggs into that basket. I just treat SA as the high risk portion of my investments.

Happy to hear any opinions on this approach.