Alternative Investment Trust (ASX:AIQ) said it has updated its foreign exchange hedging policy to largely hedge its AUD/USD exposure due to its predominantly US dollar-denominated investment exposure, adding to its existing AU$15 million AUD/USD forward contract with a further AU$56 million, with a two-year tenor, according to a Wednesday Australian bourse filing.
The company said the new hedge results in a total of AU$71 million of hedging, split between AU$15 million expiring in December at an all-in rate of 0.6441 and AU$56 million expiring in March 2028 at an all-in rate of 0.6852.
Similar to the existing forward contract, the new forward contract will not require a margin for any intra-period currency movements, the filing added.