Keeping pace with attributing currency and hedging in modern multi-asset portfolios
Currency has become one of the most challenging components of multi-asset performance measurement. As portfolios diversify across multiple regions and asset classes, the combination of exposures, hedges and differing benchmark methodologies introduces complexity that traditional attribution models often fail to capture.
Many teams still rely on security-level processing for vast numbers of holdings, increasing operational effort and producing results that misalign with how portfolio managers manage currency and hedging decisions in practice.
Our latest whitepaper introduces a clearer, more scalable approach, built on currency exposure assets and synthetic hedging instruments. It outlines how a more joined-up model can improve visibility on a portfolio’s return profile, strengthen consistency between portfolio and benchmark hedging and produce clearer, more transparent attribution results for investment and client teams.
Whitepaper key takeaways:
- Clarify currency effects in multi-asset strategies: Learn how to isolate and represent currency exposures more effectively, even when portfolio and benchmark hedging differ.
- Align hedging across portfolios and benchmarks: See how a consistent framework manages partial, full or unhedged benchmarks and supports fair comparisons with portfolio hedges.
- Simplify attribution without losing detail: Understand how exposure-based modelling removes heavy security-level processing while retaining analytical precision.
- Apply robust hedge-weighting methodologies: Explore ways to calculate hedge weights using benchmark methodologies or portfolio-specific daily weights.
Is your currency hedging model ready for the complexity of current benchmarks and portfolios?
Download the whitepaper to explore how a more coherent approach to currency exposures and hedging can strengthen attribution, improve portfolio insight and deliver clearer, more consistent results for investment and client teams.
If you have any questions or would like to discuss the content, get in touch with our team of experts today.