Currency Overlay


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Currency Overlay

The practice of using a firm specializing in currency hedging. This firm is called the overlay manager. The overlay manager takes a number of positions in various foreign currencies in order to reduce the client's foreign exchange risk.
References in periodicals archive ?
Yann Rault, previously Head of MFS UK, continues in his role as Global Head of Passive Currency Overlay, with responsibility for growing the PCO product range and targeting a broader range of Securities Services clients.
American Century Emerging Markets Debt is a total return fund that incorporates emerging markets debt with a global currency overlay.
OptimInvest, formerly registered in Switzerland as “Overlay Asset Management,” is a leading specialist currency manager, providing tailored currency solutions in multiple absolute return strategies and currency overlay mandates.
In 1987, the fund awarded FX Concepts the mandate to manage the currency exposure linked to its international equity portfolio-one of the first currency overlay mandates ever granted.
BNY Mellon Global Markets' currency hedge administration service was launched using BNY Mellon's proprietary iHedge platform to provide passive currency overlay strategies and share class hedging programmes to global institutional investors.
Bridgewater began investment operations in 1975, and is a pioneer in risk budgeting and the separation of alpha and beta, managing Portable Alpha/GTAA, Hedge Fund, Optimal Beta/Risk Parity, Currency Overlay, Global Fixed Income and Inflation-Indexed Bond mandates.
This includes managing regional and global funds with active currency overlay and significant allocations to Asian sovereign and corporate debt.
show that Currency Overlay funds had mixed results in the Second quarter of 2011.
These new benchmark FX Indices also can be used to measure relative performance of active currency overlay strategies.
AUDJPY and NZDJPY also suffered, with interbank names and CTAs reportedly tracking the losses elsewhere, along with interest from currency overlay managers.
This fully updated and revised second edition of the best selling practical guide Currency Overlay continues to emphasise the same approach as in the First Edition: measuring currency risk separately in the portfolio, clarifying risk responsibility, using specialists where necessary, and taking control of the currency risk.
Windham manages over $35 billion in currency overlay and absolute return strategies for institutional investors and provides investment advice and technology solutions to global customers overseeing trillions of dollars of assets.