RBC says it has executed its first FX trades with clients via AMOS, a new daily FX trade recommendation service aimed at hedge funds and real money clients who have an active FX mandate. Subscribed clients receive daily FX trade recommendations ahead of execution, replicating the performance of RBC’s FX positioning based trading strategy dollar […]
Tag: Active Management
Institutional investors have long understood the value of diversifying their portfolios, and this usually means investing internationally.
But when they buy foreign equities, they’re actually buying two portfolios, the first being the long equities denominated in their base currency, and the second is that they’re shorting their base currency against the foreign currency they need to purchase the equity.
This presents institutional investors with a choice: they can do nothing and accept the risk of holding this foreign currency, hedge that currency exposure passively or manage it actively.