Tag: benchmark construction

As more asset owners adopt centralised currency overlay programmes to manage growing foreign exchange exposures, the need for a robust framework to measure the added value of these decisions has become critical. Such frameworks help evaluate the contribution of currency strategies to overall fund performance—an essential step as currency volatility increasingly impacts portfolio returns.

As global markets continue to face volatility driven by shifting economic policies—including trade developments—asset owners are placing greater emphasis on understanding and mitigating currency risk.