We provide tailored and flexible currency management solutions, focused on client objectives including active and semi-passive hedging. A separate currency overlay may provide significant cost-saving synergies for investors seeking to outsource operational risks.
We have combined a global presence with local expertise to help our clients implement effective solutions since 2002.
Experience
Our dedicated currency management team has an average of over 20 years of hands-on experience managing currency exposures for institutional investors (covering a wide range of mandate types and currency pairs) and is supported by a product team of over 50 investment professionals.
Client-focused (and specialist) approach
We work with our clients to define their needs, most of our mandates are customized according to specific client preferences, currency exposures and/or risk constraints.
Operational expertise
Specialized currency risk management systems and tools enable highly automated, efficient management of foreign currency exposures and Foreign Exchange (FX) transactions.
Passive or semi-passive (smart hedging)
Currency hedges are maintained and adjusted in line with client guidelines and the currency exposure of the underlying assets. We aim to ensure MiFID II (Markets in Financial Instruments Directive) -compliant trading and reporting capabilities with competitive execution tailored to individual client requirements.
Share class hedging
Optimized hedging and execution service that seeks to minimize tracking errors and reduce costs.
Portfolio hedging
Value-added hedging and rebalancing strategy designed for individual client needs.
Active and rule-based
Tailored to specific client preferences, risk appetite, currency exposures, factors, and/or risk constraints.
Rule-based hedging
Systematic adjustment of strategic hedge ratios based on factors that have influenced foreign exchange rates in the past. For example, our rule-based hedging strategy provides an intuitive link between hedging cost, valuation, and hedge ratios for international investors.
Active hedging
Discretionary management of hedge ratios within a given bandwidth (around the benchmark hedge ratio) based on “fair value” estimates, the behavior of exchange rates through the economic cycle, sentiment indicators, and technical analyses.
Currency for return
Rule-based or discretionary strategies tailored to client objectives.
Investments in foreign currencies involve the risk that the foreign currency might lose value against the investor’s reference currency. The return on discretionary mandates depends on the selected asset classes and correct market assessment. No capital or return is guaranteed. The liquidity of the instruments depends on the product and market conditions in each case.
Disclosures:
- Not a recommendation/offer/solicitation
- All investing entails risk, including risk of losing principal
- No guarantee investment objectives will be achieved
- This information should not be relied upon as the basis for any investment decision
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Introducing our leadership team
Meet the members of the team responsible for UBS Asset Management’s strategic direction.
