Hedged Equity fund - what does this mean/what is benefit?

Username2012

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My pension provider offers the "Irish Life Indexed Euro Hedged Global Equity Fund". It appears to be a global passive equities tracker (what I am looking for) but has an odd hedging element.

The factsheet says "In addition to the replication of the holdings within the FTSE World Index, the non-Euro currency positions are hedged on a monthly basis for 1 month using currency forwards".

Is anyone familar with this fund? I can't for the life of me see the benefit of this feature but perhaps I am missing something.

My understanding is that it locks in the EUR/Foreign FX rate for one month, meaning any gains/losses in underlying non-EUR quoted stocks arising from are avoided for 30 odd days. Then I imagine they are then realised after this period as a new 1 month forward has to be put in place? Furthermore just because a company (say CRH) is quoted in Euro doesn't mean the underlying exposure is in Euro (i.e. may be significant USD, etc.) so I don't understand how this can be "hedged" in any meaningful manner (nor do I see why it is desirable).

Given I will (all going to plan) retire in several decades, what possible benefit does this offer? Apologies if this seems like a stupid question but I consider myself well informed on these matters but have never seen such a hedged fund!
 
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