Hedging for Asset Managers
Hedging for Asset Managers
Hedging for Asset Managers products have been developed as an extension of our Passive Hedging experience and expertise, specifically for asset managers where currency exposure can materially impact the returns delivered to investors.
These bespoke solutions are tailored specifically to the individual asset manager’s strategy and structure of their underlying investments with a focus on liquidity optimisation, efficient implementation and granular reporting.
Record provides solutions to managers across the full spectrum of private markets asset classes.
Managers may have hedging requirements at the asset level (e.g. when a fund has an investment in a different currency to which the fund is denominated) and at the fund-level (e.g. where a fund has a different currency share class for investors).
Record’s value add
- Outsourced operational risk – Fully outsourced offering including tailored reporting and ongoing support
- Bespoke structuring – Tailored hedging solutions designed to meet each client’s specific liquidity requirements
- No margin, no collateral trading – Proven track record of negotiating unmargined & uncollateralised FX trading lines
- Established agency ISDAs – 25+ relationships with global banking partners
- Cost-efficient trading – Transparent pricing and low execution costs (~0.5-3.0bps p.a.)
AUM composition
Mandate size
Risk appetite
Risk volatility
Case study
Hedged EUR feeder into USD closed-end fund
A global private credit manager was facing significant demand from EU institutional investors for a hedged EUR feeder vehicle. The manager had limited prior hedging experience and required a fast solution ahead of a closing.
Contact us
Email: [email protected]