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.
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.
AUDJPY and NZDJPY also suffered, with interbank names and CTAs reportedly tracking the losses elsewhere, along with interest from currency overlay managers.