Editor's letter - the importance of communicating hedging objectives

Managing a successful hedging programme involves more than prudent execution and careful monitoring of positions – companies should also be prepared to explain, both to investors and the media, the programme’s objectives, experts say.

All too often hedging ‘gains’ and ‘losses’ are reported in the mainstream financial press as headline figures with no context. For example, losses on derivatives are often publicised with no reference to the fact that physical fuel prices have dropped, offsetting