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What strategy should be adopted when managing currency risk dynamically ?
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Diversifying investments internationally generates currency risk in portfolios.
Such risks can lead to :
- lower returns
- higher volatility.
We have developed the COM (Currency Overlay Management) programme, in order to respond to these risks.
Our management can be implemented following one of two approaches:
- a passive approach
- an active approach
- management mandate
- currency overlay fund
The COM program adjusts the hedge ratio according to market movements in order to optimize the currency risk management.
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The expertise that we have built helps us identify risks and develop the best strategies for dealing with those risks.
The strategy proposed complies with pre-determined rules and is based on a benchmark set by the client.
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