PSPF shuns FX hedging despite dollar losses

The Taiwan dollar has gained 5.5% against the US dollar this year, negatively affecting Taiwanese investors’ returns on greenback-based assets. But the country's two state retirement funds remain wary of currency hedging, despite advisers to their boards suggesting they should make more use of it. Public Service Pension Fund (PSPF), which does not use foreign exchange derivatives, and Bureau of Labor Funds (BLF), which makes some use of FX swaps, have indicated they do not intend …