Our approach to currency management
Currencies are an inherited exposure that can have a sizeable short-term impact on portfolios. Unmanaged currencies can have high risk and low return in the long term. Actively managing currency exposure can therefore help to address currency volatility and also add value.
Our currency team seeks to provide currency solutions for a wide variety of clients. We have established a long-term track record of delivering performance in the currency industry through innovation and continuous self-assessment.
Our strategies include Currency Risk Management, which seek to control risk using sophisticated passive management techniques, Active Currency Overlay, which uses active management of both major and emerging market currencies, and currency as an alternative investment.
Unusually, and despite the currency generally being regarded as cheap, the Canadian dollar has weakened throughout the Bank of Canada’s hiking cycle over the last two years. With economic growth stalling towards the end of 2018 and the Bank of Canada adopting a more balanced outlook, questions are re-emerging about the outlook for the currency over the medium term.
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