Capital Markets | Global Foreign Exchange Solutions
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Bespoke, automated end-to-end solution strengthens oversight, eases administrative burden and supports distribution strategies.
Managing and mitigating volatility throughout the currency management life-cycle is central to successful performance outcomes. Asset managers and asset owners alike require increased levels of governance, oversight and transparency combined with the ability to respond quickly to market events.
Realize the benefits of working with Northern Trust to help you manage your entire foreign exchange process.
Helping to Reduce Risk
A non–discretionary principal execution model set to agreed client parameters.
Streamlining Complex Operational Processes
Innovative delegated product suite underpinned by a scalable integrated operating and technology model.
Actively monitoring against target hedge ratios and unrealized P&L views.
Sophisticated performance analytics and transparency, enabling you to make informed decisions.
Solutions to Meet Specific Requirements to Suit Your Investment StrategyShare-Class Hedging
Aiding distribution strategies by hedging the fund’s non-base share class currency back to the fund’s base currency helping reduce divergence.
Unhedged Share Class Conversion
SPOT conversion from the share class currency into the fund’s base currency.
Hedging the portfolio’s non-base currency assets back to the fund’s base currency, mitigating currency exposure for international assets.*^^
A combination of share-class hedging and portfolio overlay by hedging the fund’s asset currencies at the share class level.
*On an asset or index weighting basis. ^^ Non Deliverable Forward (NDF) or proxy hedging for restricted currencies
Multiple global macro events and inflationary pressures are presenting challenges for asset managers and asset owners alike to address FX currency risk in their international portfolios. Adopting an effective currency management programme through the use of nuanced hedging models and utilisation of new technologies may help alleviate some of these pressures and free up time to focus on alpha generation. Andy Lemon, Head of Currency Management for Northern Trust Capital Markets, shares insights with Funds Europe.
As firms strain to hedge currencies amid rising exposures and complexities, many are embracing an upgrade to customized outsourcing. But others are still falling behind.
This marketing communication is issued and approved for distribution in the United Kingdom and European Economic Area by The Northern Trust Company, London Branch (‘TNTC’) or Northern Trust Global Services SE (‘NTGS SE’). TNTC is authorised and regulated by the Federal Reserve Board; authorised by the Prudential Regulation Authority; subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. NTGS SE is authorised by the European Central Bank and subject to the prudential supervision of the European Central Bank and the Luxembourg Commission de Surveillance du Secteur Financier. View full disclaimer.
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