Tailor-made post-execution FX reporting, providing client feedback and offering sound KPIs as an independent overview.
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.
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.
Full automation and industrialisation of reporting API in a cloud-hosted SaaS, offering to our clients Systematisation, Control and Transparency in hedging currency risk.
Provide clients with independent feedback boasting transparency in addition to performance for service differentiation.
Understand the costs and the risks associated with currency exposure and hedging.
Analyse the effectiveness and improve the efficiency of FX overlay strategies.
Provide clients with independent feedback boasting transparency in addition to performance for service differentiation.
Cloud-hosted SaaS
Fully industrialised reporting API
Internal calculation library
Attractive visual reports
The difference between the interest rates of the local and foreign currencies affects the hedging applied to the investment.
Not reaching a full 100% hedge at all times leaves part of the exposure subject to currency risk.
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.
The costs of the executed hedging transactions reduce the benefits of the investment.
Between two hedging instances the market movements cannot be anticipated and hence are not fully hedged.
Traditional Share Class Hedging (SCH) consists of cancelling the exchange rate risk inherent in a share class denominated in a foreign currency, i.e. in a currency other than that of the fund. Hedging transactions necessarily entail costs that affect the client’s final result. It is therefore important to find the smartest way to carry out […]
The performance of a portfolio during a single period can be attributed to a set of factors, but in order to aggregate those daily factors and get a breakdown of the portfolio’s total performance during a multi-period (for example 1Y), we have to make use of an smoothing algorithm.
Today’s topic deals with an unavoidable source of friction in the FX hedging markets: Execution Timing Lags. The distance between valuation and execution in currency hedging can have an impact in the mitigation of spot movements. Today’s topic deals with an unavoidable source of friction in the FX hedging markets: Execution Timing Lags. The distance […]