La Compagnie Benjamin de Rothschild
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Family Advisory - Currency Overlay Fund

How is currency risk best managed for a portfolio or a combination of portfolios ?

Our management services are available through a mandate or the purchase of fund units. The latter option is easier to set up.

This is a Luxembourg-domiciled SIF (specialised investment fund).

Its advantage is that it can pool a portfolio’s various risks and/or risks of different portfolios into a subfund.

The COM (Currency Overlay Management) programme adjusts the hedging ratio to market movements, in order to better manage currency risk. Disciplined management helps obtain results in line with medium- and long-term management objectives.

Objectives

  • To protect against adverse movements in risk currencies
    Currency depreciation is partly offset by NAV trends
  • To exploit favourable movements
    The natural position gains value and NAV remains stable.