Passive Hedging

The configuration of a currency overlay portfolio is an interactive and multi-faceted process.

Our approach is to work in partnership with our clients to define the optimal:

  • Solution design
  • Portfolio construction
  • Collateral management
  • Implementation procedure
  • Ongoing service and reporting needs

Our approach is fully modular and ideal for designing fully customised solutions to best meet the requirements of our clients.

Why Insight for passive investing?

  • We aim to deliver the benchmark return at minimal cost. With this goal in mind, we are particularly focussed on tracking error, liquidity risk management, counterparty risk management, operational efficiency, best execution and informative and transparent reporting
  • As a full-scale provider of currency solutions, we are able to evolve our solutions to fit our clients’ changing requirements
  • Our experience in the currency absolute return space can support our clients in setting the right level of benchmark
  • Insight has extensive experience with all underlying asset types and can accommodate nuances within a strategy
  • Insight’s reputation and market leverage helps to ensure that we can deliver competitive execution pricing for our currency clients

Currency solutions in numbers

  • 1991 Year we started actively managing currency risk for our clients
  • 24 investment professionals with 20 years' average industry experience
  • £48.4bn assets managed by the Currency Solutions team

As at 31 March 2022. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients including active discretionary assets which include the value of fixed income strategies with an active currency overlay.

Important information

The value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.

Currency hedging techniques aim to eliminate the effects of changes in the exchange rate between the currency of the underlying investments and the base currency (i.e. the reporting currency) of the portfolio. These techniques may not eliminate all the currency risk.