Over the last few years, clients have had to tackle ever-changing market conditions and are now faced with rising complexity, increasing cost pressure, more investment diversity, broader distribution networks, and greater volatility across currencies. Optimising currency risk management has now become an essential task within any manager’s investment strategy, and to help clients take on these challenges and mitigate investment risk, CACEIS has enhanced its Currency Overlay services offer.
Understanding the issues and risks clients face, CACEIS has developed a range of three currency risk management solutions that cover funds’ assets and liabilities.
Share Class Hedging permits hedging of units in currencies other than the fund’s base currency thereby protecting investors against exchange rate volatility and allowing them to take full advantage of generated alpha.
Portfolio hedging involves hedging securities in a portfolio which are not in the fund or fund units’ base currency.
Benchmark hedging uses the varied weightings of currencies in the fund’s benchmark index to hedge the portfolio’s assets.
"By delegating The Currency Overlay Services to CACEIS, asset managers benefit from the tried and trusted expertise and know-how of a dedicated team of specialists in the field. This is complemented by a robust and flexible currency management system, and a structured implementation process to ensure operational efficiency and a smooth roll-out”, explained Charline Lescouzeres, Group Product Manager - Senior Expert at CACEIS.
Understanding the clients’ objectives is key when selecting the right currency hedging strategy. With this new offer, CACEIS can provide bespoke and flexible currency overlay solutions that precisely match clients’ specific needs in terms of currency exposure and risk constraints.
"This innovative offer includes features that deliver numerous benefits to our clients, such as enhanced visibility over their activities with dynamic dashboards accessible via OLIS. Similarly, currency hedging strategies can be selected and implemented leveraging automated operational processing and data flow integration. It also gives clients full transparency over their foreign exchange transactions", notes Charline Lescouzeres.
This range of products is the result of close collaboration between the CACEIS Product Development team, the Investment Management Services team and the Market Solutions teams, who have contributed their diverse expertise to this hedging offer so clients are able to mitigate Forex risk with minimal hassle.
To find out more about our customisable Market Solutions offer, please contact our specialist sales team via marketsolutionssales@caceis.com
