HedgingMFC has slated the end of 2012 to reach their 60% hedged target.
However because of the markets going up and up they probably accomplished this target already.
I am a believer now that they should hedged 100% and wipe MFC sensitivity to the markets off completely.
The normalised earnings are good enough, because what is wrong with $4B annualised earnings
for MFC going forward from 2015.
The Ceo said
. “I'm looking forward to the day when people will focus on the core earnings potential of the company and will be less focused on the capital markets sensitivity,”
This is why we have to hedge fully and wiped off all the mark to market gains and losses.
However I believe they are hedging in parts so as to recapture MFC's losses when the markets were
going down so as to rebuild their book-value.
Only my opinion.