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Blue graphic of currency volatility

Currency Management

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.

Active Monitoring
Actively monitoring against target hedge ratios and unrealized P&L views.

Enhanced Oversight
Sophisticated performance analytics and transparency, enabling you to make informed decisions.


Solutions to Meet Specific Requirements to Suit Your Investment Strategy

Share-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.

Portfolio Overlay
Hedging the portfolio’s non-base currency assets back to the fund’s base currency, mitigating currency exposure for international  assets.*^^

Look-Through Hedging
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

 

More Insights

Trends in Asset Servicing


Inflation is back and with it a global interest rate response whose differentials are driving currency movements.

  


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.

© 2023 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with limited liability as an Illinois corporation under number 0014019. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. This material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to expert, institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors. For legal and regulatory information about our offices and legal entities, visit northerntrust.com/disclosures. The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual. The following information is provided to comply with local disclosure requirements: The Northern Trust Company, London Branch, Northern Trust Global Investments Limited, Northern Trust Securities LLP and Northern Trust Investor Services Limited, 50 Bank Street, London E14 5NT. Northern Trust Global Services SE, 10 rue du Château d’Eau, L-3364 Leudelange, Grand-Duché de Luxembourg, incorporated with limited liability in Luxembourg at the RCS under number B232281; authorised by the ECB and subject to the prudential supervision of the ECB and the CSSF; Northern Trust Global Services SE UK Branch, UK establishment number BR023423 and UK office at 50 Bank Street, London E14 5NT; Northern Trust Global Services SE Sweden Bankfilial, Ingmar Bergmans gata 4, 1st Floor, 114 34 Stockholm, Sweden, registered with the Swedish Companies Registration Office (Sw. Bolagsverket) with registration number 516405-3786 and the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) with institution number 11654; Northern Trust Global Services SE Netherlands Branch, Viñoly 7th floor, Claude Debussylaan 18 A, 1082 MD Amsterdam; Northern Trust Global Services SE Abu Dhabi Branch, registration Number 000000519 licenced by ADGM under FSRA #160018; Northern Trust Global Services SE Norway Branch, org. no. 925 952 567 (Foretaksregisteret), address Third Floor, Haakon VIIs gate 6 0161 Oslo, is a Norwegian branch of Northern Trust Global Services SE supervised by Finanstilsynet. Northern Trust Global Services SE Leudelange, Luxembourg, Zweigniederlassung Basel is a branch of Northern Trust Global Services SE. The Branch has its registered office at Grosspeter Tower, Grosspeteranlage 29, 4052 Basel, Switzerland, and is authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA. The Northern Trust Company Saudi Arabia, PO Box 7508, Level 20, Kingdom Tower, Al Urubah Road, Olaya District, Riyadh, Kingdom of Saudi Arabia 11214-9597, a Saudi Joint Stock Company – capital 52 million SAR. Regulated and Authorised by the Capital Market Authority License #12163-26 CR 1010366439. Northern Trust (Guernsey) Limited (2651)/Northern Trust Fiduciary Services (Guernsey) Limited (29806)/Northern Trust International Fund Administration Services (Guernsey) Limited (15532) are licensed by the Guernsey Financial Services Commission. Registered Office: Trafalgar Court, Les Banques, St Peter Port, Guernsey GY1 3DA. Northern Trust International Fund Administration Services (Ireland) Limited (160579)/Northern Trust Fiduciary Services (Ireland) Limited (161386),  Registered Office: Georges Court, 54-62 Townsend Street, Dublin 2, D02 R156, Ireland.

Capital Markets | Global Foreign Exchange Solutions

We provide a range of liquidity, trading and outsourced foreign exchange solutions underpinned by sophisticated technology that is designed to provide speed, efficiency, transparency and optimum execution within a robust risk framework.