General Information

Currency Management Solutions

Credit Suisse Asset Management has been managing active and passive currency overlay mandates for institutional investors since 2002. Today we manage close to USD 27 bn* in tailored currency overlay and share-class hedging mandates using specialized currency-risk management systems and tools.

Why Delegate Currency Management?

A separate currency overlay can provide significant cost-saving synergies for most Swiss-based investors while also eliminating operational risks. Our dedicated currency team has an average of 17 years of hands-on currency management experience combined with extensive knowledge of the Swiss market, and is supported by a large number of experienced specialists across the firm. This combination of global knowledge and in-depth local market expertise allows us to offer value-added solutions for all your currency needs, including active and passive hedging.

Competitive fees and low minimum thresholds make our solutions attractive even for smaller mandates.

Client-Focused Approach

A delegated currency-management solution begins with assessing the client’s needs. What is the optimal execution set-up? Which portfolios and positions should the mandate cover? What are the properties of those positions (valuations, currency allocation, liquidity)? Which currency exposures should be hedged directly or indirectly (via proxy)? What levels and ranges of hedging does the client want? And, finally, which FX strategy should be applied (implementation only, optimized, rule-based or active?)

Passive: Currency hedges are maintained and adjusted in line with client guidelines and the currency exposure of the underlying assets. MiFID II-compliant trading and reporting capabilities ensure competitive execution tailored to individual client requirements.

  • Share-class hedging: Implementation and execution service; seeks to minimize tracking errors and reduce cost.
  • Portfolio hedging: Value-added hedging and rebalancing strategy designed for individual client needs.

Active: In addition to passive hedging, we also offer risk-reducing or return-seeking strategies designed to meet client objectives.

  • Rule-based hedging: Systematic adjustment of strategic hedge ratios based on factors that have influenced foreign exchange rates in the past. For example our rule-based hedging strategy provides an intuitive link between hedging cost, valuation, and hedge ratio for Swiss-based investors.
  • Active hedging: Discretionary management of hedge ratios within a given bandwidth (around the benchmark hedge ratio) based on “fair value” estimates, the behavior of exchange rates through the economic cycle, sentiment indicators, and technical analysis.
  • Currency for return: Rule-based or discretionary strategies tailored to client objectives.

If you need further information or wish to talk about your individual currency management or execution needs, please get in touch. We will be delighted to help.

Key Figures

2002 The year of our first external currency overlay mandate
USD 27 bn Currency exposures under management
17 Average years of experience in dedicated currency team
7 Total number of currency specialists**

* Currency exposures under management by the currency management team as of 30.06.2017.
** Our currency management team is supported by a dedicated trading team as well as a large number of experienced specialists across the firm.

Secondary Content

Contact Us

Currency Management Solutions 

+41 44 332 90 73 / +41 44 333 30 32