Advanced FX Analytics

Tailor-made post-execution FX reporting, providing client feedback and offering sound KPIs as an independent overview.

Why?

Why?

Currency risk can have an enormous impact in investments. Controlling it can be hugely beneficial. It is an area that is often misunderstood and unattended. General rules may be applied without clear objectives.

How?

How?

In-house performance attribution methodology capable of breaking down results into over 50 highly-detailed subfactors. The meticulous calculation provides accuracy and complete control given a hedging strategy and the full mandate and market data.

What?

What?

Full automation and industrialisation of reporting API in a cloud-hosted SaaS, offering to our clients Systematisation, Control and Transparency in hedging currency risk.

Enhance governance and oversight of foreign exchange impacts

Provide clients with independent feedback boasting transparency in addition to performance for service differentiation.

Improve transparency

Improve transparency

Understand the costs and the risks associated with currency exposure and hedging.

Complex mathematical analysis

Complex mathematical analysis

Analyse the effectiveness and improve the efficiency of FX overlay strategies.

Continuous monitoring

Continuous monitoring

Provide clients with independent feedback boasting transparency in addition to performance for service differentiation.

Full automation

Cloud-hosted SaaS

Fully industrialised reporting API

Internal calculation library

Attractive visual reports

Which factors make up the result?

Interest Rate Differential

Interest Rate Differential

The difference between the interest rates of the local and foreign currencies affects the hedging applied to the investment.

Hedge Ratio Filter

Hedge Ratio Filter

Not reaching a full 100% hedge at all times leaves part of the exposure subject to currency risk.

Execution Timing Lags

Execution Timing Lags

The delays in executing the hedging and conversion operations affect the final result due to not carrying them out at the same time as valuation.

Transaction Costs

Transaction Costs

The costs of the executed hedging transactions reduce the benefits of the investment.

Asset Value Uncertainty

Asset Value Uncertainty

Between two hedging instances the market movements cannot be anticipated and hence are not fully hedged.

Related ETS papers

Look-through Hedging: Optimising Currency Overlay
Linking Impact in Divergence Attribution
FX Hedging – Execution Timing Lags
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