Pension funds' dollar hedging at a decade low > News

[Category] Foreign exchange
[Original publication date] 2026-09-03

Citing Bloomberg data, Vantage Markets reports that pension funds and insurers across six major markets had hedged only 41% of their foreign currency assets as of 30 June 2026, the lowest level since at least 2015. Currency hedging means taking steps in advance to reduce losses caused by exchange rate moves. That said, the figure covers only the handful of markets that publish such data, and the latter part of the piece runs into promotion of the firm's own CFD and leveraged products, so it is worth reading the information and the advertising separately.

Key points to check
- The 41% figure is as of 30 June 2026, and it is measured against all foreign currency assets, not the dollar alone. There is a roughly two-month lag before publication, so do not assume it reflects the situation today.
- As the original itself notes, the figure aggregates only the six markets that disclose hedging data, including Japan, Canada and Taiwan. Reading it as a global average would be misleading.
- The original explains that dollar-linked products can move quickly when the currency mood shifts, and goes on to describe stop-loss orders and leverage. Leverage magnifies gains and losses by the same multiple, and you can lose your entire capital.

Original
USD Hedging Falls to 41%, Lowest Ratio Since 2015
https://www.vantagemarkets.com/market-news/usd-hedging-decade-low-september-3-2026/

This article is an independent summary based on publicly available material from Vantage Markets. It is not investment advice, a personal recommendation, or a guarantee of returns; for actual product terms, check the official documents current at the time you use the service.