Tag: currency manager selection

currency manager selection

Is Active Currency Management Making a Comeback?

A new report finds that institutional investors are taking a more active approach to managing portfolio-wide currency risks, and in particular there is a greater appetite for active currency overlays.
The report, by investment analytics firm bfinance, says this change is being driven by divergence in European and US interest rates, geopolitical unrest and greater scrutiny of costs.
The report also recommends investors look beyond the headline fees and look closer at transaction costs, stating, “Although front-end fees receive column inches, transaction costs have been the subject of serious reappraisal from investors and regulators alike. The days of prop trading scandals may have ended; the days of investors accessing more cost-efficient trading are only just beginning.”