Strategic Currency Hedging

To adjust the passive hedge ratio on a strategic basis to optimise over the long term

Investment Objective:

Our Strategic Hedging strategy reviews the passive hedge ratio (quarterly or bi-annually) to seek to optimise the hedge ratio on a longer term basis within the range specified by the client.

Key Features:

  • The strategic hedge ratio applied to currency exposure in an international asset portfolio is adjusted infrequently but potentially materially to optimise over the long term
  • The hedge ratio is adjusted versus the base currency only, with no cross-hedging
  • Strategic hedging seeks to capture the major trends in portfolio currencies versus the base currency

Benefits:

  • Shifts the responsibility of long term currency impact away from non-specialist boards and Trustees.
  • Seeks to adjust the passive hedge ratio on a strategic basis only to reduce the incidence of large drawdowns and cash outflows
  • Longer-term review period helps capture currency’s mean-reversion to its ‘fair-value’ over time

 Hedge ratios vary on a strategic basis over the long term

Dynamic Hedging

What Makes Us Different:

  • Substantial experience in analysing and forecasting major currency trends
  • A large investment team including one of the founders of the managed currency industry
  • Provide tailor-made programmes addressing client’s unique requirements

Solutions


Risk Mitigation


Manage Exisiting Risk


Absolute Return


Strategic Currency Hedging

Who we are

Founded in 1994, we are an independent institutional asset manager based in London specialising in currency investment management for institutional clients globally.
Contact us to discuss your requirements.

What we do

We provide currency management solutions including risk mitigation strategies, active management of existing risk, absolute return products and advisory services.
Learn more.