Mesirow Financial says that its currency management group has surpassed $100 billion in assets under management as of December 31, 2019.
The firm says currency is one of the biggest risks for institutions investing abroad and, as more money is put to work overseas, this risk continues to grow. As a result, a significant demand for Mesirow’s currency risk management services has led to a 50% increase in AUM since 2017.
Australian, Canadian, and European investors have historically been focused on managing currency risk because their portfolios often have large allocations to international securities, Mesirow explains, adding that US investors have not typically hedged currency risk, but with increasing allocations to international equities, fixed income and private investments, it has observed growing risk management interest from US institutions.
“Whether investors decide to manage currency risk or not, careful evaluation of the investors’ exposure to foreign exchange moves would be worthwhile,” says Joseph Hoffman, CEO of Mesirow Financial Currency Management. “Mesirow can help clients decide if currency hedging would benefit investment portfolios and can also offer guidance on currency risk management program aspects such as which currencies to include and the appropriate exposure.
“We are proud to positively impact our clients’ portfolios with products ranging from risk management to currency for return,” he adds. “As an independent agent providing custom FX solutions to institutions globally for over 25 years, we value long-term partnerships with our clients and are proud of the work our team of specialists has done to create innovative solutions for our clients.”