What does currency hedged versus unhedged mean?

An unhedged fund leaves you exposed to moves in the Australian dollar; a hedged fund tries to remove that exposure, at a cost.

If you own overseas assets unhedged, a falling Australian dollar adds to your return in AUD terms and a rising one subtracts from it - regardless of how the assets themselves performed.

Hedging reduces that effect but is never free or complete: there is a cost, hedges are rebalanced periodically, and the interest-rate differential between currencies affects the result. Some Shariah-compliant funds are constrained in the hedging instruments they can use, which is disclosed in the PDS.