New Change FX Launches Share Class Hedging Analytics

Thursday, 13/02/2020 | 06:45 GMT by Celeste Skinner
  • The company has launched the new solution with the help of Lumint Currency Management Inc.
New Change FX Launches Share Class Hedging Analytics
Bloomberg

New Change FX, an independent data and Analytics business, announced this week that it has teamed up with Lumint Currency Management Inc. to offer Share Class Hedging analytics and other services.

Investment management firms offer a program of different hedge share classes for investors who are exposed to currency risk. The aim of these is to limit the effect of movements in exchange rates between the currency of a Hedged Class and the Base Currency of a portfolio.

“Whilst asset and portfolio hedging are driven and directed by the investment management process, share class hedging is rules based and designed to insulate the investor from currency risk, if his base currency is not the base currency of the fund,” the company said in a statement published on Wednesday.

“As such it adds no alpha but can be a substantial drain on the performance of the hedged share class, if it is not managed correctly.”

New Change FX solution addresses major challenges

New Change FX and Lumint have launched the new analytics for investment managers who want to outsource some, or all, of their hedging program. According to the statement released by the company, their solution addresses all the major challenges and opportunities faced by investment managers.

Under the partnership, Lumint provides a full STP process to obtain hedge data, which then establishes a clear rules-based hedge calculation process.

“In addition to this service of performance attribution and analysis, the LUMINT product set offers a variety of bespoke solutions tailored to meet a client’s individual requirements. This enables clients to either outsource their hedging requirements entirely, including an agency execution capability or to provide an effective software application that allows them to manage this activity themselves,” the statement explained.

New Change FX provides a live spot FX benchmark that has been authorized by both the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA). The company also offers other consolidated Forex reference rates.

New Change FX, an independent data and Analytics business, announced this week that it has teamed up with Lumint Currency Management Inc. to offer Share Class Hedging analytics and other services.

Investment management firms offer a program of different hedge share classes for investors who are exposed to currency risk. The aim of these is to limit the effect of movements in exchange rates between the currency of a Hedged Class and the Base Currency of a portfolio.

“Whilst asset and portfolio hedging are driven and directed by the investment management process, share class hedging is rules based and designed to insulate the investor from currency risk, if his base currency is not the base currency of the fund,” the company said in a statement published on Wednesday.

“As such it adds no alpha but can be a substantial drain on the performance of the hedged share class, if it is not managed correctly.”

New Change FX solution addresses major challenges

New Change FX and Lumint have launched the new analytics for investment managers who want to outsource some, or all, of their hedging program. According to the statement released by the company, their solution addresses all the major challenges and opportunities faced by investment managers.

Under the partnership, Lumint provides a full STP process to obtain hedge data, which then establishes a clear rules-based hedge calculation process.

“In addition to this service of performance attribution and analysis, the LUMINT product set offers a variety of bespoke solutions tailored to meet a client’s individual requirements. This enables clients to either outsource their hedging requirements entirely, including an agency execution capability or to provide an effective software application that allows them to manage this activity themselves,” the statement explained.

New Change FX provides a live spot FX benchmark that has been authorized by both the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA). The company also offers other consolidated Forex reference rates.

About the Author: Celeste Skinner
Celeste Skinner
  • 2872 Articles
  • 25 Followers
About the Author: Celeste Skinner
  • 2872 Articles
  • 25 Followers

More from the Author

Institutional FX

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}