Dynamic currency hedging aims to vary the amount of hedging in order to provide better results than a static hedging strategy.
- Dynamic currency hedges are applied to individual currency exposures.
- The investment process was developed specifically for hedging purposes, with a special focus on identifying high-risk situations and reacting prudently.
- Our systematic methodology combines momentum management and factor identification tools with macro-economic signals based on the portfolio views of our discretionary investment team.
- The approach is based on clear and sensible principles, and can be applied to a wide variety of currency pairs including emerging markets.
- Our analysts monitor the latest academic research and Foreign Exchange market trends to develop enhancements to our methodology.
- The aim is to protect against adverse currency movements while allowing participation in favourable movements.
- The cash flows resulting from hedging transactions should be improved versus static hedges.
- The strategy can be customised by currency pair and applied to any benchmark between 0% and 100% hedge ratio.
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