John is a portfolio manager for a large pension fund that has substantial exposure to foreign equities. The pension fund's investment strategy includes a significant allocation to European stocks, which has been performing well. However, John is concerned about the potential impact of currency fluctuations on the value of these investments.

To hedge against currency risk, John is considering various strategies available to manage exposure to currency effects on the pension fund's portfolio. He must decide whether to implement direct currency hedging through forward contracts, passive currency allocation strategies, or make no changes to the current investment strategy.

Which strategy would best help John manage the currency risk associated with the pension fund's foreign equity exposure?