Mesirow Currency provides investors a customized solution to manage unrewarded currency risk in their international portfolios
As an independent currency specialist, Mesirow Currency has been delivering innovative, customized currency solutions to institutional clients globally since 1990.1 Being a private, employee owned firm, Mesirow is free from many conflicts of interest associated with bank-affiliated organizations or publicly held firms and is fully aligned with the interests of its clients.
Dynamic active hedging has been a custom solution offered to our institutional clients since 1990.1 Our diverse, quantitative model suite operates over various market regimes and across multiple time horizons.
Currency movements are driven by the impact of information as it enters the market over various time horizons (i.e. weekly, monthly, multi-monthly). Our adaptive process consumes data on a daily basis and, along with risk oversight, measures the effect of various market drivers over short and long-term timeframes.
Currency markets demonstrate meaningful volatility in a portfolio and provide opportunities for currency managers to add value through active trading. Mesirow Currency specializes in single currency and multi-currency portfolios and begins by managing currency risk already present in a client portfolio.
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Our systematic process responds to changing market environments and adjusts positions accordingly to reduce portfolio volatility and capitalize on directional opportunities associated with currency price movements.
Source: Mesirow. Past performance is not necessarily indicative of future results; actual outcomes may materially differ.
Manage client's existing currency risk while potentially adding value in gains and limiting losses
Target return* | 100ā150 basis points p.a. expressed through active adjustment's to client's hedge ratio
āRisk* | 2ā4% tracking error (typical mandate)
āTime horizon | Realize target returns over 3-to 5-year investment horizon
Exposure | Each clientās currency exposure is unique in terms of currency, size, frequency of changes in the underlying investment, and operational constraints. Each area is taken into consideration and a structure is implemented to maximize hedge program efficiency.
āMethodology | Varies from client to client based on their portfolio, Mesirow Currency builds the operational framework to be the most accurate and efficient and to accommodate the client's needs.
āReporting | Customized reporting packages are produced to ensure clients receive the most comprehensive information available to evaluate the programās performance and ensure complete transparency.
Experience | Our trading team averages 20+ years experience and is fully staffed on a 24-hour basis throughout the global trading day.
āSystems | Mesirow Currency's core proprietary software and market leading external systems allow us to serve as agent for our client base across a broad roster of global counterparty institutions.
āCounterparties | Competitive counterparty selection process, rigorous attention to all aspects of transaction pricing, and transparent execution reporting. This best-in-class approach ensures execution effectiveness that incorporates a bid/offer spread and time stamp approach and translates directly into transparent value for our clients.
An effective program will expertly balance operational mandate requirements with a thoughtful, strategic approach to achieve a clientās specific risk management objectives. Mesirow Currency has built the necessary IT and Systems infrastructure to properly manage the most complex currency management mandates, and we continue to develop and invest significant resources to ensure it remains best in class.
Description
Reduce or eliminate risk, ensure best execution and effective cash flow management
Efficiently hedge long-term currency movements; insulate portfolio from fluctuation