eFX – adding value to all aspects of the currency overlay process

Henrik Pedersen & Xavier Lefevre from Overlay Asset Management in Paris talk to e-Forex about the value added from e-FX on their business.

First Published: e-Forex Magazine 21 / Case Study / October, 2005

Henrik Pedersen & Xavier Lefevre from Overlay Asset Management in Paris talk to e-Forex about the value added from e-FX on their business.Henrik PedersenXavier LefevreCurrency Overlay has grown significantly in popularity since the first mandates were awarded in the late 1980’s, and in particular over the past couple of years. The main drivers behind recent growth business growth can predominantly be attributed to:1. A basic need for currency hedging/risk management linked to the increase in global cross-border investments (and trade exposures)2. A new need for investments that have the ability to earn positive returns uncorre-lated to the broader markets such as equities and bonds.This development has also been supported by the general drive from institutional in-vestors towards a specialist approach in all areas of their asset management activi-ties including the cost and processing benefits of outsourcing FX management in general.Essentially currency overlay is the process of separating currency...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here