We had an overweight position in the US dollar and the Canadian dollar. Within emerging markets, we were long on the Indian rupee, while the Mexican peso moved to neutral in September and the Polish zloty moved to neutral in August. We were underweight the pounds sterling, euro and yen, the latter two were both reduced. The US dollar outperformed all major currencies. Emerging market currencies weakened against the US dollar.

Our overweight position in the US dollar, which outperformed all major currencies, had a strong and positive impact on the fund, while the overweight position in the Canadian dollar detracted from performance. Our underweight positions in the pounds sterling, euro and yen all contributed positively. The allocation to emerging market foreign exchange had a negative impact on the fund, as it weakened against the US dollar.

We were overweight to our top-rated currencies, namely the US dollar and Norwegian kroner, until February. We also moved to an overweight position in the Australian dollar in February. Within emerging markets, we were long on the Chilean peso and the Peruvian nuevo sol until January, and long on the Mexican peso and Malaysian ringgit until February. However, we were underweight to the Japanese yen and the euro.

Most major currencies outperformed the US dollar, while the kroner underperformed early in the quarter. Meanwhile, the euro performed in line with the US dollar. The Mexican peso and Malaysian ringgit also performed well.

Our overweight positioning in the US dollar and kroner, as well as our underweight positioning in the yen, had negative impact on the fund, while our overweight positioning in the Australian dollar had a positive impact. Being underweight to the euro also had a positive effect. While our overweight position in the Mexican peso had a positive influence, our overweight position in other emerging market currencies proved negative for the fund.