Underweight positions

An underweight position in one where a fund or portfolio does not hold as much of a particular security when compared to the weight of that security held in the underlying benchmark portfolio. Underweight can also refer to an analyst’s opinion regarding the future performance of a security in scenarios where it is expected to […]


When a managed fund, such as a global shares fund, is unhedged, investors are exposed to fluctuations in the currencies of its underlying investments. When an overseas portfolio is fully hedged, the investment manager is uses currency futures to offset the impact of currency fluctuations on the portfolio.