Berenberg Asset Management has announced its adoption of BestX, the FX analytics software provider, in order to deliver greater transparency and evidence best execution to their clients.
“As one of the largest quantitative active currency managers with an asset base of EUR 11 billion, we have a specific responsibility towards our clients, says Matthias Grimm, head of overlay at Berenberg. “We want to offer them the highest level of transparency, not just for our investment process but also with regards to best execution. We are now able to emphasise our capabilities in execution and independently prove the added value we are generating for our clients.”
Nico Nussbaumer, head of FX execution at Berenberg, adds, “In particular, the importance of indirect execution costs is often underestimated by investors using an outsourced currency manager. But it can have a significant impact on the performance of a currency hedging strategy. For this reason, we established a team that is specialised on execution and segregated from portfolio management. Our best execution process reduces indirect costs significantly and we will be able to present this evidence to our clients in the future. BestX’s expertise will contribute with in-depth analysis and pre- and post-trade tools to our unique trading setup.”
Since inception in 2016, BestX – which is in the throes of being acquired by State Street – has gained significant market share within the asset manager community. “The uptake for BestX software continues to be driven by the demand for increased transparency in the FX market,” says Oliver Jerome, co-founder of BestX. “Our aim is to provide a utility to the market that allows asset managers to demonstrate best execution, continually improve their processes, and above all, to evidence that process on demand.
“The AUM of our buyside clients is through $17 trillion and we are starting to see adoption increase across Germany and more broadly in Europe,” he adds. “Berenberg is an institution which prides itself on being a thought leader and prioritising customer service, and we are proud that they have chosen BestX to help them continue that tradition.”