Technology, Trading, & Analytics
From record global investment flows to macroeconomic imbalances, rising fiscal deficits and sovereign risk, and galloping currency volatility, today’s institutional investors and asset managers are vitally interested in the management of currency risk. In this Q&A, Jay Moore, managing director of Currency Management at State Street Associates, the independent investment research arm of State Street Global Markets, addresses some of investors’ key concerns about currency management in the current financial environment.
Record global investment flows, macroeconomic imbalances, rising fiscal deficits and sovereign risk infuse currency markets with volatility. As investment portfolios expand the proportion of their assets deployed across borders, currency management assumes a critical role in risk management. Our most recent Vision Focus paper, “Currency Management in a Volatile World” describes the wide range of approaches available to asset owners and managers, ranging from static hedging designed to mitigate currency risk to currency alpha strategies that view currencies as a separate asset class.
Super funds and investment managers achieve long-term benefits by aligning themselves with the ESG movement. This article appeared in Investment Magazine.