In today’s complex financial markets, institutional investors are increasingly managing multiple currency exposures to help generate returns while also balancing risk.
Our currency management service meets your needs, by providing you with bespoke foreign exchange execution and currency hedging solutions to help minimize risk, reduce costs and increase efficiency. We build our solutions to meet your specific currency management needs, whether you require share class hedging, portfolio hedging, portfolio hedging at a share class level or benchmark and ETF hedging.
Share class hedging
Our focus is on operational risk control and performance of the share class to replicate returns of a master strategy in another base currency. To manage risks, we use customized modules designed to systematically import and verify data from various agents. For performance, our process focuses on well-defined execution.
Our portfolio hedging solutions focus on removing operational risks while considering the tradeoff between tracking error and transaction costs. Our sophisticated simulations also help to illustrate the relationship between transaction costs and tracking error.
We offer two types of benchmark hedging services: benchmark weight hedging and currency-hedged benchmark replication. The first involves hedging exposures based on the currency weights of a published unhedged benchmark, and is used by active and semi-active funds. Our currency-hedged benchmark replication service involves hedging exposures based on the currency weights of a hedged benchmark, commonly used by passive funds.
With over three decades of experience in currency management, we have an approximate 40-member team of professionals based in Boston, London, Sydney, Frankfurt and Tokyo to cater to your management needs. A partnership with us means a consultative approach to delivering optimization and innovative scalable solutions to complex hedging strategies. Our experienced staff and fit-for-purpose technology generate a consistent and precise hedging program, alongside transparent execution and reporting. You can enjoy flexibility, as our solutions can be adapted to a wide range of client types, with an agency model that allows access to multiple counterparties outside of the organization. We also provide hedging services for clients who utilize third-party administrators.