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- Who We Serve
- What We Do
- About Us
- Insights & Research
Currency Management
Inquire About Our Services
Bespoke, automated end-to-end solution strengthens oversight, eases administrative burden and supports distribution strategies.
Managing and mitigating volatility throughout the currency management life-cycle is central to successful performance outcomes. Asset managers and asset owners alike require increased levels of governance, oversight and transparency combined with the ability to respond quickly to market events.
Realize the benefits of working with Northern Trust to help you manage your entire foreign exchange process.
Helping to Reduce Risk
A non–discretionary principal execution model set to agreed client parameters.
Streamlining Complex Operational Processes
Innovative delegated product suite underpinned by a scalable integrated operating and technology model.
Active Monitoring
Actively monitoring against target hedge ratios and unrealized P&L views.
Enhanced Oversight
Sophisticated performance analytics and transparency, enabling you to make informed decisions.
Solutions to Meet Specific Requirements to Suit Your Investment Strategy
Share-Class HedgingAiding distribution strategies by hedging the fund’s non-base share class currency back to the fund’s base currency helping reduce divergence.
Unhedged Share Class Conversion
SPOT conversion from the share class currency into the fund’s base currency.
Portfolio Overlay
Hedging the portfolio’s non-base currency assets back to the fund’s base currency, mitigating currency exposure for international assets.*^^
Look-Through Hedging
A combination of share-class hedging and portfolio overlay by hedging the fund’s asset currencies at the share class level.
*On an asset or index weighting basis. ^^ Non Deliverable Forward (NDF) or proxy hedging for restricted currencies
Trends in Asset Servicing
November 7, 2023
Inflation is back and with it a global interest rate response whose differentials are driving currency movements.
Northern Trust Banking & Markets is comprised of a number of Northern Trust entities that provide trading and execution services on behalf of institutional clients, including foreign exchange, institutional brokerage, securities finance and transition management services. Foreign exchange, securities finance and transition management services are provided by The Northern Trust Company (TNTC) globally, and Northern Trust Global Services SE (NTGS SE) in the European Economic Area (EEA). Institutional Brokerage services including Integrated Trading Solutions (ITS) are provided by NTGS SE in the EEA, Northern Trust Securities LLP (NTS LLP) in the rest of EMEA, Northern Trust Securities Australia Pty Ltd (NTSA) in APAC and Northern Trust Securities, Inc. (NTSI) in the United States. For legal and regulatory information about our offices and legal entities, visit northerntrust.com/disclosures. For Asia-Pacific markets, this communication is directed to expert, institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors. © 2024 Northern Trust Corporation.