In a bid to foster innovation within our field, we continuously conduct applied research on a variety of topics related to currency risk management.
May 23, 2024
In this update of our 2019 research article, we document a worsening of FX hedging performance from investment funds compared to a specialized currency manager. What’s more, we provide an explanation for this sustained and significant added cost of FX hedging through funds.
Jun 25, 2021
The goal of a passive currency overlay is to eliminate currency-related volatility within a client’s portfolio, thereby neutralizing any potential for downside risk and upside gains due to currency fluctuations.
Jun 25, 2021
A dynamic currency overlay looks to limit the risks of currency exposure while also increasing the returns on an investor’s underlying portfolio.
Jun 17, 2021
To minimize currency risk arising from exposure to international assets, there are two solutions to consider: a passive or a dynamic currency hedging approach.
Many Swiss institutional investors routinely rebalance their foreign currency hedges at the London fix on the last working day of the month. Unfortunately, unbalanced flows as well as banks’ and speculators’ activity conspire to create a disadvantageous trading environment.
Oct 13, 2020
Oct 13, 2020
Many Swiss institutional investors routinely rebalance their foreign currency hedges at the London fix on the last working day of the month. Unfortunately, unbalanced flows as well as banks’ and speculators’ activity conspire to create a disadvantageous trading environment.