Why are currency-hedged ETFs or index funds used in some cases?
Pillar 3a is subject to certain restrictions with regard to the use of different asset classes and the maximum permitted foreign currency risk.
In order to give our clients maximum flexibility in defining their investment strategy and at the same time limit the 3a foreign currency risk, we use currency-hedged ETFs and index funds for some asset classes in Pillar 3a. We have selected the asset classes for which favourable and efficient currency-hedged instruments are available on the market. For the asset classes for which this is not the case, we also use non-currency-hedged ETFs and index funds in Pillar 3a, as in our free asset management.