Currency Overlay

Limit your exposure and increase profit with tactical Currency Overlay strategies.

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If you lack the time to monitor currency movements and be proactive in the market, outsource your Currency Overlay services to our experienced and tactical team.

We have over 40 years of industry experience in the FX and Currency Management space, having managed > $20bln in FUM. We understand all facets of foreign exchange – both as proponents of risk seeking, as well as for market risk mitigation – and can therefore offer invaluable support.

Our overlay services are uniquely designed for each mandate, underlying asset portfolio and risk return profile.

  • For Passive Strategy we offer peace of mind that the NAV will be unaffected by currency fluctuations.
  • For Active and Dynamic strategies, we aim to improve the overall outcome of your portfolio returns (alpha) by active trading of currencies.

When to use Currency Overlay

  • A lack of time to monitor currency movements and be proactive in the market.
  • Limited experience or expertise within the company, in creating a successful currency overlay program.
  • When a company’s international assets are being adversely impacted by currency fluctuation.
  • There’s a need to hedge overseas exposure, but don’t want it to remain a static percentage.
  • A preference to outsource the duty of care to ensure clients obligations are met.

 

Our Currency Overlay Process:

ANALYSE

We begin with a comprehensive analysis of your underlying asset portfolio and the relationship of returns with the currency exposure(s).

DESIGN & DEVELOP

Based on your investment mandate, we offer expert guidance on choosing the appropriate Overlay strategy – Passive, Active or Dynamic.

IMPLEMENT & OPERATE

All technical and process changes are tested meticulously prior to implementation. Once strategies are in motion, we continue to monitor, generate feedback and offer professional advice and development as needed.

We can also trade on your behalf, proactively managing your currency exposure.

 

Talk to the team today about our Currency Overlay services

Currency Overlay Insights

Currency Overlay: Why it’s important for managing currency risk

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