As I understand, Peter Switzer recommends this US fund – WCMQ. If WCMQ invests in quality companies around the world, do they still earn and report in US$’s? Does this mean that a falling US dollar will have a negative impact on WCMQ share price/profits? Is WCMQ immured from a falling US dollar in the companies that it invests in that are outside US.
A: With regard to WCM and the local investment securities WQG and WCMQ:
- All reported and measured in US dollars. The returns are then translated into Australian dollars;
- Yes, for Australian investors, exposed to a weakening US dollar (rising Australian dollar )
- But, WCM has an international in focus, and many of the earnings are derived outside the US. If the Australian dollar matches (say) the Euro and the Yen, then the net impact will be minimal.
