The sustainable investor for a changing world

Active currency hedging strategy

Key features

A hedging solution designed to mitigate risk and volatility from foreign currency exposures

Fully customisable
to client requirements

A long-established and experienced portfolio management team 

Investment philosophy 

Our investment philosophy rests on four key beliefs:

  • Hedging should never add to foreign currency risk
  • Every position should reduce risk 
  • Trend-following strategies are not well suited for currency hedging
  • A strong focus on drawdowns limits negative cash flow

Investment process

Our Active Currency Hedging strategy follows a three-step process: 

  1. We take a top-down approach to currency movements, seeking to anticipate the policy changes and capital flows that drive them.
  2. We combine these long-term views with rigorous bottom-up perspectives to determine a score for individual currencies. The score indicates the currency’s direction and our conviction.
  3. Final positions and hedging sizes are implemented, based on the clients’ FX exposures and risk guidelines.

Team and resources

Our Currency Management team is based in New York. Momtchil Pojarliev, who has more than 17 years of investment experience, leads the team.

The team benefits from access to our global trading and risk management platform, Sustainability Centre, Quantitative Research Group and Macro Research team.  

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved.