Execution: Fiduciary FX

For institutional investors

Why consider?

An outsourced trading solution for asset managers and asset owners with focus on reducing transaction costs, improving transparency and enhancing operational efficiency


Reduce transaction costs, improve transparency and enhance operational efficiency


Reduce execution costs by 3-12 basis points; no return target


Not applicable


Not applicable

Agency trading can result in significant savings

*Actual returns may materially differ from target returns. **Actual tracking error or volatility may materially differ from the targets set forth herein. Risks and offering terms vary materially by product. Nothing contained herein constitutes an offer to sell interest in any Mesirow Financial investment vehicle. Source for non-agency trading costs: MCM analyses of trades executed from 10.1.17  to 10.31.19 on behalf of institutional investors evaluating the Fiduciary FX program.  Source for agency costs: Virtu analysis of MCM trading from 2018 to 2019. Indirect trading involves an exclusive currency provider – usually the investor’s custodial bank – purchasing or selling FX to settle security transactions and converting foreign-denominated dividends and other investment income. The bank manages the trading without communicating with the investor, thus eliminating an opportunity to influence the price. No other banks compete for the investor’s business, resulting in a monopolistic situation with greater spread costs. Direct trading typically involves contacting a bank and negotiating an exchange rate. Spread costs are usually lower because of the negotiation and because the investor often has the capability and willingness to trade with more than one bank, creating a competitive environment. Past trading costs are not necessarily indicative of future trading costs. Actual results may materially differ.