- Dynamic currency hedging aims to vary the amount of hedging in order to provide better results than a static hedging strategy.
- Dynamic currency hedging is applied to individual currency exposures.
- The investment process was developed specifically for hedging purposes, with a special focus on identifying high-risk situations and reacting prudently.
- Our systematic methodology combines momentum management and factor identification tools with macro-economic signals based on the portfolio views of our discretionary investment team.
- The approach is based on clear and sensible principles, and can be applied to a wide variety of currency pairs including emerging markets.
- Our analysts monitor the latest academic research and Foreign Exchange market trends to develop enhancements to our methodology.
- Currency exposures are monitored and managed.
- Investors can obtain better outcomes by improving returns and/or reducing the volatility of cash flows.
- Operational efficiency is achieved through optimising the execution process and managing settlement and reconciliation with custodian banks and/or prime brokers.
- Best execution is achieved through access to a curated panel of counterparties.