Our group provides the professional management of fixed income, currencies, equities, commodities and real estate for individuals, families, trusts, foundations and corporations. Investment management services include financial statement analysis, asset selection, plan implementation and ongoing monitoring of investments. Our expertise in currency overlay is unmatched in the financial industry. Currency overlay is the management of currency risk already existing in an international portfolio. This risk must be managed separately from the underlying assets. Once we, in conjunction with our clients, have recognized the risk from currencies that are inherent in a portfolio, a decision needs to made what to do about this risk.
*Do nothing, which is the riskiest position, leaving the portfolio with unmanaged risk and random walk returns.
*Implement a passive hedge, which is easy to do and negates the currency risk, but reduces diversification benefits from international investing
*Implement an Active Currency Overlay program which enables the investor to reduce risk and add return to an international portfolio (alpha). Prior to implementation client goals, risk tolerance, time horizon, and the investment parameters are defined.