At M&G we offer currency-hedged share classes on many of our retail funds. The aim of the hedged classes is to mitigate the impact on performance of exchange rate movements between the fund’s currency exposure and the investor’s chosen currency. For example, a euro-based investor in a sterling bond fund may wish to capture just the return from sterling bonds. A euro-denominated share class would deliver this return, but with the additional impact of movements between sterling and the euro. A euro-hedged share class, however, would seek to mitigate this additional impact, leaving the investor with just the desired exposure to the performance of sterling bonds.