RE:RE:RE:RE:Volatility
My understanding is as follows, but I am subject to correction. GRC owns a number of royalty streams of US businesses, including, for example, Humble Abode, TruGolf, and InteriorMark. Apparently the royalty streams from them are in USD, and with a rising CAD, the value of these payments in Canadian dollars is less. Furthermore, with the new IFRS accounting, the actual value of the GRC investment in these companies, which is denominated in USD, is also subject to quarterly revision. As the CAD increased, these too, and not just the royalty streams from them, have declined.
In answer to your question, basically, a strong CAD is a disadvantage with regard to these investments. If the CAD dropped, the value of these investments would increase. With the introduction of the IFRS accounting system thereappears to be a big hit, since this would re-evaluate all of their investments taken together. Previously GRC seems to have recorded currencly gains and losses as they translated each of their historical costs into CAD. I would guess that with currency fluctuations over time, future currency gains/losses would be much more moderate.
I am still unclear whether GRC has engaged in active currency hedging in regard to their US investments. Can someone claify this?