Passive Hedging

Just as every investor’s objectives and investment portfolios differ, so too should hedging programs be designed to effectively address any associated currency risk. At Record, no two hedging programs are designed or treated alike; each aspect of a hedging program is carefully considered with a client’s unique requirements in mind. From tailoring the program design to delivering customised client reporting, we adapt the offering to suit your needs.

Whilst a passive currency hedging program is a risk mitigation strategy (and therefore not intended to deliver ‘returns’), there are, nevertheless, several opportunities to add value and minimise implementation costs of a hedging program, many of which are included and incorporated within the design and implementation of our Core Passive Hedging service. Additionally, we offer an array of innovative Enhanced Hedging services intended to further improve hedging outcomes and which may be suitable to certain clients from time to time.

Core Passive Hedging

Our core passive hedging service is intended to remove or reduce exposure to unrewarded risk from an investment portfolio. The systematic process is designed to reduce currency volatility (rather than generate a return) as well as offer opportunities to minimise costs, and our implementation is focused on maximising operational efficiencies.

Tenor Management

We can implement a tenor management strategy designed to optimize the impact of the interest rate differential at different time horizons by adjusting the duration of hedges.