It's funny to see how our friends across the ocean see things differently. As an Australian, the current talk in the industry is how Australian shares have been underperforming the past few years and how we should be increasing client allocations to unhedged overseas shares. Personally I think that (as usual) the prevailing market opinion is behind the game here - I was into unhedged international shares when our dollar was worth nearly $1.10US, and am now starting to think about hedging again now that the AUD/USD exchange rate seems closer to fair value.