NEW YORK - As U.S. pension funds diversify their investments overseas, money managers are moving beyond hedging of currency risk and are actively exploiting volatility to boost returns, experts say.

Foreign exchange is no longer treated merely as an afterthought of foreign investment, but as an active asset class, said Ezra Zask, a money management consultant. "The notion is that if we are stuck with the [currency] exposure, we may as well try to make some money out of it," he said.

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