We believe the best way to improve the outcomes of currency hedging is to focus on managing cash flows and currency losses.
With a portfolio made up of overseas securities, the risk occurs when you are translating foreign currency exposures back into your base currency. You can reduce the risk by hedging the foreign currencies back to the base currency. Value is then added by actively managing the hedge ratio.
Our focus is on estimating and managing the currency risk embedded in international investment portfolios. We don’t try to forecast future currency returns.
We’ve developed a proprietary, statistical model-based approach known as Currency Risk Management (CRM) to help achieve a desirable asymmetry of returns . It’s designed to generate the highest level of upside capture, consistent with an uncompromising commitment to the control of risk of loss.
How is it provided?
CRM is provided on a unfunded (overlay), segregated basis.
To find out more about CRM and how to access the strategy, contact us.
Please note the value of investments and any income from them will fluctuate and is not guaranteed.