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 ?
As for the Euro, The populist coalition government of Italy's government also remains a potential concern, warranting some factoring by currency overlay managers.
Through our collaboration with Northern Trust, clients including asset managers and asset owners will benefit from process excellence, superior technology, transparency, analytics and sophisticated reporting on their currency overlay and FX programs.
He prefers a "currency overlay" as a means of generating portfolio income but warns this is suitable for family offices of institutional investors, not individual investors.
American Century Emerging Markets Debt is a total return fund that incorporates emerging markets debt with a global currency overlay. The American Century Strategic Income fund institutes tactical sector management; American Century Short Duration Strategic Income uses a similar approach by initiating an income-focused investment process capable of providing clients with broad exposure.
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.
EUR-USD dipped before meeting good demand into 1.2300, which propelled the pair on a rebound to a 1.2335 intraday high, a six-session peak, price action that fitted talk of there being a sell-dollars-on-gains view among speculative and currency overlay managers following the big U.S.
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.
show that Currency Overlay funds had mixed results in the Second quarter of 2011.
This includes managing regional and global funds with active currency overlay and significant allocations to Asian sovereign and corporate debt.
AUDJPY and NZDJPY also suffered, with interbank names and CTAs reportedly tracking the losses elsewhere, along with interest from currency overlay managers.