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.
International portfolio assets are subject to currency fluctuations. Passive currency hedging is an effective way of reducing or eliminating volatility created by the currency exposures of a portfolio's underlying assets.
| MSCI World1 | Equity contribution | Currency contribution | ||
| Mar 2002āJul 2011 |
|
35.66% | 7.96% | 25.65% |
| Aug 2011āSep 2022 |
|
82.12% | 113.98% | -14.89% |
| Source: Mesirow, Bloomberg, MSCI. Past performance is not necessarily indicative of future results; actual outcomes may materially differ. | ||||
Unhedged currency exposures generally introduce additional portfolio volatility and have no expected return, resulting in uncompensated risk. Hedging out currency risk can help investors improve portfolio efficiency and reduce this uncompensated risk.
Source: Mesirow, Bloomberg, MSCI.2 Past performance is not necessarily indicative of future results; actual outcomes may materially differ.
Reduce or eliminate risk while ensuring best execution and effective cash flow management
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Target return* | Passively remove currency risk; no return target
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āRisk* | Minimize tracking error while maximizing trading efficiency
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āTime horizon | Static, long-term hedge
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
Efficiently hedge long-term currency movements; insulate portfolio fromĀ fluctuation
Manage existing currency risk to potentially add value in gains and limitĀ losses