The fall and dramatic rise of the Canadian dollar over the last 12 months is a prime example of the volatility that currency adds to Canadians’ global investments according to Toronto-based Criterion Investments Ltd.

Trading at 30 years highs against the U.S. dollar, the loonie has also strengthened significantly against other key currencies — up more than 9% against the Japanese Yen and more than 5% against the euro, British pound and Swiss franc over the first five months of 2007. The strengthening currency typically takes a bite out of the value of Canadians’ global portfolios as many investments are held in foreign currencies.

From lows to highs, the Canadian dollar traded at an average range of over 13% against the major currencies during the 12 month period to May 31, 2007. Those currency swings added significant volatility to Canadians’ global portfolios.

“Nobody knows for sure where the dollar is headed next, but we do know that currency adds considerable risk to the foreign investments in Canadians’ retirement savings,” says Ian McPherson, president of Criterion. “Most Canadians are saving for future spending in Canadian dollars, so why hold euro and yen securities in your portfolio when exchange rates can take a bite out of those investments when the time comes to bring them home?”

In mid-2006, Criterion launched Canada’s first family of currency-hedged global solutions to provide Canadians with an opportunity to invest outside of Canada while taking changes in global currencies largely out of the mix. The original Criterion Currency Hedged Funds have helped smooth the currency roller coaster ride for investors over the last 12 months.

For example, Criterion International Equity Currency Hedged Fund outperformed the majority of funds in its peer group, without the added risk and volatility associated with multiple currencies. Sub-advised by top tier institutional manager The Boston Company Asset Management LLC, a subsidiary of Mellon, this fund is the only currency-hedged international equity fund available for everyday Canadian investors.

Criterion Water Infrastructure Fund, Canada’s first actively-managed global water fund, was added to the Criterion Currency Hedged Fund line-up in February 2007.

Criterion is an affiliate of VenGrowth Asset Management Inc., a manager of private equity and alternative investments with a proven track record of success since 1982.