Solutions and Capabilities Currency Management

Currency Management

Credit Suisse Asset Management has been managing active and passive currency overlay and risk management solutions for institutional investors since 2002. Today we manage close to USD 27bn1 in tailored currency overlay and share-class hedging programs using specialised currency risk management systems and tools.

Why delegate currency management?

From January 2018, major new regulations brought on by the Markets in Financial Instruments Directive (MiFID) II, will affect everyone dealing in foreign exchange markets across Europe. For many asset managers and fund administrators there will be increased cost and challenges to comply with these new requirements of transparency and documentation. Outsourcing FX execution to someone who already has the expertise, experience and technology to help you meet these challenges for 2018 and beyond, could therefore be an attractive proposition.

Key figures

2002

The year of our first external currency overlay mandate

27

bn USD in currency exposures under management

17

Average amount of experience (in years) in our dedicated Currency Management team

7

Total number of currency specialists2

Potential regulatory impact on existing FX transaction services:

  • MiFID II will require financial institutions to achieve and demonstrate best execution using pre- and post-trade transaction cost analysis
  • PRIPPs will require the transparent reporting of all transaction related costs including foreign exchange mark-ups in the investor documents for collective investment schemes
  • Continued reduction in risk taking capacity by the market could make achieving “best execution” more difficult

If you have any questions or would like to learn more about how to design and implement a best practice currency management solution and execution set-up, our currency management specialists would be happy to help.