Risk management overlays

For institutional investors

Customized passive, passive plus and active currency overlay

An independent currency specialist, Mesirow Currency has been delivering innovative solutions to institutional clients globally since 1990.1 As a private, employee owned firm, Mesirow is free from many conflicts of interest and is fully aligned with the interests of its clients.

A currency guide for institutional investors

Close up on currency

Passive risk management

Reduce or eliminate risk while ensuring best execution and effective cash flow management

Target return* | Passively remove currency risk; no return target

Risk** | Minimize tracking error while maximizing trading efficiency

Time horizon | Static, long-term hedge

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Close up on currency

Passive plus risk management

Efficiently hedge long-term currency movements; insulate the portfolio from fluctuation

Target return* | Target 25–40 basis points p.a. 

Risk** | 50–80 basis points tracking error (typical mandate)

Time horizon | Long-term solution infrequently reset strategic hedge ratio

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Close up on currency

Active risk management

Manage existing currency risk to potentially add value in gains and limit losses

Target return* | Target 100–150 basis points p.a. 

Risk** | Tracking error of 2–4% (typical mandate)

Time horizon | Realize target returns over 3- to 5-year investment horizon

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1. Track record for Currency Risk Management Overlay strategies prior to May 2004, the date that the Currency Risk Management team joined Mesirow, occurred at prior firms. Track record for Currency Alpha and Macro strategies prior to October 1, 2018, the date that the Currency Alpha and Macro Strategies team joined Mesirow, occurred at prior firms.

*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 investment vehicle. Please refer to the disclaimer page here.