Currency Overlay

Each of our clients has individual risk and return objectives. To fit this need, our currency management offers tailor made solutions to manage currency exposures. The client-specific strategy balances risk and reward needs.

When deciding to implement a currency overlay programme, international investors face a strategic decision regarding the proportion of the currency exposure to be hedged and whether to actively manage the remaining currency exposure or to maintain a passive hedge. The hedge ratios are defined with our clients upfront.

Active Currency Management - Currency Overlay

Clients who seek to reduce currency risk and enhance returns of their cross-border investments, hedge dynamically. This programme utilises our long-standing experience and performance generating process to actively hedge the currency exposure in clients' portfolio or balance sheet. We thereby reduce currency losses and P&L volatility while allowing currency gains to pass through. Benefits for the clients include reduced performance volatility, improved returns and managed cash flows.

Passive Currency Management - Maintain Hedge Ratio

Clients seeking to reduce or eliminate currency risk from their cross-border investments, hedge passively. This service implements fixed or strategic hedge positions to protect portfolio holdings from volatility and downside risks of currency exposure. Benefits include best-pricing, cash flow and position management, optimisation of forward trades, and operational improvements.

Success Factors

»  18 years of solid track record in currency market
»  Professional infrastructure including proficient prime brokerage set-up
»  Skilled team of currency experts with a wide range of expertise:
    overlay, risk management, options, alpha, execution, etc.

Process of Currency Overlay