Active Currency Overlay

Investment Objective:

Our Active Currency Overlay product is designed for investors seeking to actively manage the existing currency risk in an international portfolio of assets with the objective of adding incremental return and tactically hedging the existing risk.

Key Features:

  • Long-term track record of positive risk-adjusted returns
  • Proprietary risk management framework which truncates downside risk and achieves positive skewness of returns
  • Programmes are “Unfunded” - minimal capital allocation is required

Millennium Global’s style is distinctive amongst Active Currency Overlay managers*

Active Currency Overlay


*Stylised representation of currency industry peers.

Benefits:

  • Programmes seek to improve the risk/return characteristics of an international asset portfolio
  • Returns are typically uncorrelated to traditional equity, bond and commodity market returns
  • Possibility to be implemented on a stand-alone basis or with a passive benchmark hedge depending upon client requirements

What Makes Us Different:

  • Highly experienced currency investment team (with an average industry tenure in excess of 20 years) including one of the founders of the currency overlay industry
  • Distinctive fundamental discretionary investment approach that offers strong diversification benefits
  • Investment approach is adaptive to changes in the economic and financial market environment
  • Active collaboration with clients to establish and manage bespoke programmes, regarding operational set-up, portfolio guidelines and a passive hedge benchmark as required.
  • Operational platform designed to meet the needs of institutional clients for 20 years

Solutions


Risk Mitigation


Manage Exisiting Risk


Absolute Return


Solutions

Passive Hedging

Passive Hedging

Hedging individual exposures. Aiming at eliminating currency risk.

Dynamic Hedging

Dynamic Hedging

Hedging individual exposures improving on a static hedge

Active Currency Overlay

Active Currency Overlay

Transforming existing exposures improving risk-adjusted returns

Absolute Return

Absolute Return

Unconstrained, aiming at achieving uncorrelated returns

News & Media

FT Podcast, Currencies on the move

December 1, 2017

FT Podcast, Currencies on the move

Wall Street Journal Podcast: Where is the U.S. Dollar Going?

July 6, 2017

Wall Street Journal Podcast: Where is the U.S. Dollar Going?

Moody's downgrades China: What the fund managers are saying

May 26, 2017

Moody's downgrades China: What the fund managers are saying

FT Hard Currency Podcast: Smoking May, red-hot June

May 5, 2017

FT Hard Currency Podcast: Smoking May, red-hot June

Insights & Studies

Millennium Global Macro and Currency Outlook: Highlights Q4 2017

October 11, 2017

Millennium Global Macro and Currency Outlook: Highlights Q4 2017

Millennium Global Macro and Currency Outlook: Highlights Q3 2017

September 27, 2017

Millennium Global Macro and Currency Outlook: Highlights Q3 2017

The Importance of Addressing Currency Risk in an International Portfolio

January 18, 2017

The Importance of Addressing Currency Risk in an International Portfolio