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Share Class Hedging

 

Why currency overlay management is the answer

Investors often look at investment opportunities in new jurisdictions as a means of diversification. Global trade wars and political instability has led to increased currency volatility, leading to investors demanding their managers set up local or hedged share classes to protect themselves against FX risk. Deaglo has created a simple and transparent way of determining, implementing and executing a foreign share class to complement our currency overlay management strategies.

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Multi-currency Subscriptions and Redemptions

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Share Class

Cost Analysis

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Passive vs Active Currency Overlay Strategy Comparison

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Reduced Collateral Demands

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Offset Hedging

Attract Foreign Investors

Quantify the FX risk for your foreign investors and compare the expected performance of a hedged vs unhedged share class.

 

Furthermore, our share classes are optimized to ensure they track as close to the master fund as possible. 

Currency overlay management strategies chart showing Hedged vs Unhedged Share Class returns
Onshore/Offshore setup of currency overlay account to be managed

Onshore/Offshore Set Up

No matter the location of the entity, multi-currency accounts can be set up to handle subscriptions and redemptions in any currency and pool both onshore and offshore investors.

Boost Returns

Reduce execution cost and remove collateral drag with our economies of scale and favorable margin call terms.

 

We help our clients choose the optimum tenor for their hedges and reduce the constant need to move collateral to and from our counterparties.

Chart showing the benefit of 0% Hedging facility by using share class hedging

Want To Learn More About Share Class Hedging?

Our Cross-border Content is designed to answer questions you may have about the world of cross-border transactions. If you have further questions that aren't covered by our articles, feel free to contact our team.

Learn More About Our Solutions

If you are interested in finding out more about our services or speaking to one of our team, please reach out to us on:

info@deaglo.com