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 ?
UK-based currency overlay manager Millennium Global Investments, Ltd.
This includes managing regional and global funds with active currency overlay and significant allocations to Asian sovereign and corporate debt.
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 addition to core custody, BNY Mellon will provide a range of services including recordkeeping, investment accounting, advanced performance measurement services, Dutch regulatory reporting, securities lending, compliance monitoring, passive currency overlay, global collateral management and global class action services.
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.
His responsibilities included managing a diverse group of investment strategies including US and international large and small cap, emerging markets, global all country and currency overlay.
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.
Statistics released today by BNY Mellon Asset Servicing show that Currency Overlay funds had mixed results in the first quarter of 2008.
These new benchmark FX Indices also can be used to measure relative performance of active currency overlay strategies.
Federico has extensive experience developing and implementing currency and currency overlay strategies using both quantitative and fundamental investment approaches," said Leduc.
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.