Actively managing currency risk and exploring its alpha potential are both necessary steps.
Boston, July 8, 2015 – The strengthening dollar is pushing pension funds, mutual funds, and their investment managers to investigate the need for hedging currency risk and its impact on portfolio returns. Increasingly, these buy-side firms are considering foreign exchange a separate asset class and a source of alpha, and they are also actively hedging FX exposure on a regular basis. But some investment executives still see currency risk as pure, unwanted risk to be mitigated. How is the asset management industry really managing currency exposure?
This report aims to reflect senior investment executives’ attitudes and behaviors toward managing currency risk at their respective institutional asset management firms. It is based on a March to April 2015 online survey, distributed by the staff at Institutional Investor Memberships, of North American and European buy-side executives at institutional fund management organizations.
This 46-page Impact Report contains 32 figures and one table. Clients of Aite Group’s Institutional Securities & Investments service can download this report.