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FX

OVERLAY

QC FX DYNAMIC HEDGING

 

Foreign currency risks:

Investments in foreign currencies can provide investors with additional income in case of favorable price developments. The downside, in terms of negative exchange rate developments, can lead to very important risks for portfolios or business results of corporations.

 

This may involve both direct foreign currency positions, for example via forwards, as well as indirect foreign currency positions via bonds, stocks, ETFs, real estate or commodity investments. Cases in the recent past, such as the decision of the Swiss National Bank to remove the EUR-CHF peg (2015), the dramatic collapse of the Russian Ruble (2014) or even the strong decline of the Euro against the US dollar (2014), show the inherent risk as well as the need to implement stability and predictability to companies and portfolios.

 

What solution offers Quaesta Capital to investors?

Against the backdrop of our long-standing cooperation with pension funds, insurance companies, pension plans and other institutional investors from Germany, Austria and Switzerland (DACH region) and the quantitative and systematic investment expertise in international financial markets, we are standing side-by-side with financial investors as well as corporates.

 

Our systematic overlay program QC FX DYNAMIC Overlay offers a transparent approach to manage and optimize currency risks. The range of the program, with focus on a medium to long-term hedging horizon, includes currencies of G10 countries as well as emerging markets. Only the most liquid instruments are used to hedge the risk.

 

The independence of Quaesta Capital in combination with its wide network to banks and regulated non-bank providers, promotes both price competition and transparency. In this way, we can offer our customers a fair cost structure and an independent advice.

 

Who can benefit from a professional management of foreign currency risks?

 

  • Companies with export business and companies expanding into new markets.

  • State financial institutions and municipalities with liabilities in foreign currency.

  • Pension funds and insurance companies with international investments.

  • Asset managers and family offices whose customers are directly or indirectly exposed to currency risk.

  • Fund Administrators with the need to optimize their asset allocation (keyword: Master Fund)

 

Are you interested in further information? Please contact us via info(at)quaestacapital.de or the contact form.