Passive currency hedging

Passive hedging refers to a currency management strategy that aims to neutralise all or part of the currency risks of an underlying portfolio.

If a currency overlay manager is used to implement a passive hedging strategy, the manager will normally not be allowed to vary the hedge ratio but may be required to collate and analyse information about the underlying portfolio in order to determine the amounts to be hedged and other variables.

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We provide access to a transparent marketplace for comparative FX execution from up to 15+ counterparty banks, while harnessing a unique and significant pricing efficiency for our clients and reducing their operational burden. In addition, MillTechFX provides clients with full transparency of execution via independent TCA reporting.

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