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.
Passive Plus currency hedging is an effective way to insulate an international portfolio from currency fluctuations and an efficient way to hedge long-term currency movements.
Returns generated by leaving currency exposure unhedged can vary significantly and can add or detract from performance. Passive plus currency hedging gives our clients an opportunity to manage unrewarded currency risk, capitalize on over/under valuation, reduce currency volatility, and control cash flows.
Passive Plus illustration of signal generation
Source: Mesirow. Past performance is not necessarily indicative of future results; actual outcomes may materially differ.
Efficiently hedge long-term currency movements; insulate the portfolio from fluctuations
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Target return* | 25ā40 basis points p.a. through infrequent adjustments to client's hedge ratio
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āRisk* | 50ā80 basis points tracking error (typical mandate)
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āTime horizon | Long-term solution, infrequently reset hedge ratio
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.
Systems | 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
Manage existing currency risk to potentially add value in gains and limitĀ losses