Criterion Investments Ltd. is introducing a new family of mutual funds to help mitigate the effect of the rising Canadian dollar.

The structured investment solution specialist says that the Canadian dollar’s performance against international currencies has cost Canadians with foreign assets 8% a year on average over the last three years.

“There’s been a general view for a long time that currency doesn’t matter when it comes to foreign investing. However, at the end of the day, these investments need to be brought back to Canadian dollars, so currency exchange rates will have an impact,” says Ian McPherson, President, Criterion Investments. “Currency exposure adds a major component of risk to all investments not denominated in Canadian dollars; risk that has cost Canadians dearly in recent years.”

“Currency exchange rates are volatile, unpredictable and not worth gambling on,” adds McPherson. “With a ‘do-nothing’ approach to currency exposure on their international investments, Canadians are actually making an ‘all-or-nothing’ bet that the Canadian dollar will never rise against all major foreign currencies.”

Criterion has launched the first family of investment solutions focused on protecting Canadians from currency risk. Criterion Currency Hedged Funds utilize a simple hedging strategy to mitigate most currency risk and maximize ‘pure returns’ from foreign assets. The funds enable Canadians to invest in international assets such as equities and commodities, while reducing almost all of the risk associated with currency exchange rates.

The funds will be available through licensed financial advisors in all provinces across Canada.

Criterion Global Dividend Currency Hedged Fund is a global dividend fund focused on high-dividend paying multinationals selected based on the Securities in the Return and Income Strategy Index (the “RIS Index”) managed by Merrill Lynch International

Criterion International Equity Currency Hedged Fund is an international (ex. U.S.) “growth at a reasonable price” (GARP) equity fund to be managed by The Boston Company Asset Management LLC, a subsidiary of Mellon, once the Fund reaches US$5 million in size.

Criterion Diversified Commodities Currency Hedged Fund is Canada’s first open-end fund based on a commodity futures index. It provides exposure to a diversified basket of 19 commodity futures in the form of the Dow Jones-AIG Commodity Index

“With the elimination of foreign content rules, Canadians will invest more outside of Canada and increase their exposure to currency exchange rates,” says McPherson. “Criterion Currency Hedged Funds offer a simple solution to Canadians looking to diversify internationally with less risk.”

Criterion is an affiliate of VenGrowth Asset Management Inc., one of Canada’s largest managers of private equity and alternative investments with a proven track record of success since 1982.