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Every GP and LP raising or deploying in emerging markets needs an FX strategy
Your peers are already working with Deaglo
The rising volatility in emerging markets makes managing FX more crucial than ever.
✔ However, it is still often neglected by fund managers and investors
✔ Some investors keep using hope as their strategy.
✔ This leads to large amounts of investments being exposed to FX risk, with the potential to eradicate returns.
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Hedging against FX risk added a level of safety to our offshore investments.
We used Deaglo´s tools to help us lower costs and reduce credit requirements, which has helped us to boost our returns.
Vinicius Cunha
Deputy Director
IG4 Capital
Hedging is not always the right choice, but ignoring FX risk is never the right one
✔ Having no FX strategy in place will leave your returns at the mercy of the volatile market.
✔ Without analyzing all the strategies available, you are unable to choose the best one for you.
✔ Not knowing how your returns will be affected means its impossible to get stakeholder buy-in.
✔ LPs often see an FX strategy as a prerequisite to investing.
✔ Not having an FX strategy IS a conscious decision AND a gamble.
Fund Currency
LP Currency
Notional Investment
Annual Volatilty
Value at Risk
BRL
USD
$100M
17.95%
$29.4M
Fund Currency
LP Currency
Notional Investment
Annual Volatilty
Value at Risk
ZAR
USD
$500M
14.33%
$115M
Fund Currency
LP Currency
Notional Investment
Annual Volatilty
Value at Risk
MXN
EUR
€100M
14.17%
€22.6M
Fund Currency
LP Currency
Notional Investment
Annual Volatilty
Value at Risk
INR
GBP
£500M
9.62 %
£74M
*Var is calculated over 1 year at a 90% confidence interval
Funds are sold hedging, not taught how to analyse the best FX strategy.
✔ They are sold expensive cookie cutter strategies without analyzing all the options.
✔ They suffer from large collateral requirements that drag fund performance.
✔ They are using simplistic payoff diagrams that give a limited insight to how the strategy will perform.
✔ There's no clarity on ongoing margin requirements as markets change.
✔ The have no way to measure how hedging is going to effect their potential IRR.
There is a better way to do it
Our technology removes the emotion out of the decision making process so you don't need to gamble on FX markets anymore.
Step 1
Set up your multi-currency account
Send and receive 150+ currencies at a fixed rate, whilst saving up to 70% on your international transaction fees.
Pool all your international investors in one account linked to your SPV or Fund.
Step 2
Select your Optimal Hedging Strategy
With so many different strategies available, it can be difficult to decide which one is best for you.
Our Strategy Selector makes it simple to test different strategies and assess how they might perform.
Margin Simulator shows you the likelihood of a potential margin call and how much capital you should hold back in face of this event.
Step 3
Showcase Hedged vs Unhedged IRR
Say goodbye to old pay-off diagrams and welcome the new age of graphical display for hedging performance.
Introducing HIRR: the new standard for global investing.
Showcase the effectiveness of your new strategy by comparing your Hedged IRR vs Unhedged IRR performance.
Step 4
Execute at the best terms
Getting execution correct is essential to the success of a hedged share class.
Deaglo works with you to select the best counterparty that is offering the sharpest terms and best execution as standard.
We ensure that more of your money goes to your investments, by saving you up to 75% on execution fees and as low as 0% on collateral requirements.
Step 5
Report to Stakeholders
We create in-depth reports for you to illustrate to stakeholders your positions, protective rates/levels, participation levels, maturities, hedging impact, trade costs, distribution hedge notional per fund and per currency.
Deaglo's tools helped us to explain to our investors the FX risk associated with investing in Brazil and highlight the steps we were taking to mitigate it.
This meant we were able to make our investors feel comfortable and ultimately successfully raise with highly sophisticated investors.
Marcelo Martins
Managing Director & Co-Founder
Jive Investments
Deaglo has been a great resource, helping us formulate the appropriate hedging strategies for existing and new deals.
We are excited to use Deaglo's tools to help monitor existing trade positions and ensure that liquidity risk is properly managed.
Greg Racz
President
MGG Investment Group LP
Step up and become part of the new wave of FX Risk Management.
We are giving 5 international fund managers exclusive access to our FX Risk Management Platform
In order to Request Pioneer Access you need to meet the following requirements:
✔ $60m in FX flows per year.
✔ $500m+ AUM.
✔ At least 2 vintages of funds.
These are the steps you need to follow:
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Request Pioneer access to our platform by submitting the form.
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One of our FX Specialists will set up an onboarding call with you to understand your situation and assess if you meet the requirements to join the Pioneer group.
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On January 18th you will receive your credentials to claim your Pioneer account and start using all the tools in our platform.