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Our courses are intended for a global audience, with each one being completely customisable to suit the needs of the individuals it is being delivered to.

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Foreign Exchange for Fund Managers

  • Foreign Exchange, Fund Management
  • Duration: One day
  • Information

    This one-day programme focuses on the changing role of FX in fund management. It is no longer just part of the overall investment strategy, but now can be either hedged efficiently to cover potential loss or even used as an alternative asset class to enhance performance, known as Alpha. This course is designed for both the “buy side” fund managers, and the “sell side” banks who offer the FX products. Teaching methodology will feature case studies and exercises


    Session 1:

    Course Introduction - what is Currency Risk?

    • What is currency risk?

    • Why has it become so important?

    • Recent Examples

    Session 2:

    Currency Management

    • The Statement of Investment Policy

    • Passive or active management

    • Hedging and Hedge Ratios

    • Currency Overlay Techniques

    • Return enhancement – Alpha

    • Currency as an alternative investment class

    Session 3:

    Foreign Exchange Markets

    • Global Market Overview

    • Historical Perspective

    • Differential inflation

    • Fixed VS floating exchange rates

    • Capital Flows- carry plays

    • Institutional FX growth (BIS data)

    Session 4:

    Foreign Exchange Fundamentals

    • What drives the market?

    • Supply and Demand

    • Why do exchange rates move?

    • Short or Long Term

    • Mean Reversion - PPP

    • Government policy and intervention.

    Session 5:

    Mechanics of Foreign Exchange

    • Currency classifications

    • Bid/Offer prices and spreads

    • Liquidity considerations

    • Procedures and practices

    Session 6:

    Currency Risk Management

    Using FX to minimize currency loss

    • Spot FX – the initial hedge

    • Forward FX – the rolling hedge

    • Currency Options – optimization

    • New money and redemptions

    • Examples and applications

    Session 7:

    Practical Aspects of Currency Risk Management

    • Choosing which bank to deal with

    • Competitive pricing

    • Using Market Data

    • Confirmation and Settlement

    • Banking Support

    Session 8:

    New Technology

    • FX Portals/E-FX/TWIST

    • Continuous Linked Settlement (CLS)

    • Straight Through Processing (STP)

    • Real Time Gross Settlement (RTGS)

    Course Close

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    As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.

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