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Banking & Liquidity

Foreign Exchange Overlay

Currency Cover for the Clued-Up

Speak to Our Experts

Currency hedging can be time-consuming and complicated. So let us manage it for you. Our fully comprehensive and customizable solution is built for multi-asset, multi-currency portfolios across public and private strategies, with end-to-end support across the entire life cycle of your hedge.

Combining best-execution methodologies with cutting-edge technology, we bring peace of mind to fund managers navigating today’s volatile markets and precision to even the most complex hedging challenges.

You set the parameters—hedge ratios, frequencies, tenors, and NAV triggers—and we’ll take care of the rest. No manual work. Just one market-leading, passive overlay solution that fits seamlessly into your existing workflows, allowing you to scale into new markets and investments with ease.

What's New

Overview

Whether you use it as a standalone FX Overlay service or as a one-stop shop for our integrated banking, treasury, custody, fund administration, and financing solutions, our platform gives you absolute control with full visibility.

Portfolio Hedging

Offset your portfolio’s foreign-currency assets back to the fund’s base currency.

Share-Class Hedging

Minimize FX risk between foreign share classes and your main share class.

Look-Through Hedging

Hedge your fund’s underlying positions and FX exposures directly.

Share-Class Hedging

Align fund currency risk with your investors’ preferred currency.

Index Tracking

Mirror benchmarks like the MSCI World Index and its currency mix.

Investment / Divestment

Hedge FX exposure during asset entry or exit transactions.

Spot Conversion

Convert any currency pair to satisfy payment of management fees, dividends, fund expenses, etc.

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    Fully Loaded Reporting Packages
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    Automation Across the Life Cycle
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    Global, Always-On Support
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    Solutions Tailored to Your Needs
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    Compliance with Best-Execution Standards
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    Cloud-Based Data Security

Benefits

Our FX Overlay platform is fully automated, cloud-based and built to handle the full end-to-end hedging life cycle—so you don’t have to.

Let’s Solve This Together

One Purpose-Built Platform

One Purpose-Built Platform

Unmanaged FX exposures can quietly erode returns, especially in volatile markets. That’s why more managers are choosing to outsource their FX hedging, letting them focus on their strategy, performance, and growth.

Automate Your Hedging

Automate Your Hedging

Automate every step of the hedging life cycle by setting predetermined instructions and letting us manage their implementation, freeing you up to prioritize investments and client satisfaction, not spreadsheets.

Reduce Operational Risk

Reduce Operational Risk

Outsource your operational risk, market risk, market-makers’ counterparty credit risk, execution risk, and timing risk, while cushioning the impact of adverse market moves on your portfolio.

Improve Execution Costs

Improve Execution Costs

Benefit from liquidity pricing streams (evaluated on an automated basis) as well as a global panel of liquidity providers to give you industry leading execution and TCA reports. One ISDA agreement with us gets you best execution standards across multiple liquidity providers.

Maximize Efficiency Gains

Maximize Efficiency Gains

Gain efficiencies and capitalize on opportunities with straight-through processing for a seamless transfer of funds, from execution to settlement. We may also be able to help mitigate any need for initial/variation margin in certain cases.

Navigate Any Market Environment

If recent months have taught us anything, it’s how quickly geopolitical shocks and tariff changes—and the ensuing currency fluctuations—can reshape investment outcomes. Having a solution at the ready to navigate those risks is no longer optional, it’s mission critical.

Our interactive, cloud-based solution lets you adjust your hedging tolerances at any time by importing new data securely from a recognized source or leverage the strong and stable balance sheet of MUFG Group, a $3 trillion financial institution, if you need funding.

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Client Story

Fully Automated FX

The Brief

After manual processes designed to convert non-base currency trade receivables became inefficient and prone to error, a multi-billion-dollar alternative asset manager sought an automated, scalable, and cost-effective system for converting incoming euros and sterling balances into U.S. dollars across multiple funds.

The Engagement

MUFG Investor Services’ FX Overlay team deployed a cross-border taskforce to quickly assess, build, and implement an automated FX conversion and hedging solution with minimal disruption to the client’s ongoing activities.

The Outcome

The client transitioned from a high-touch, manual FX process to a fully automated daily workflow that improved efficiency, reduced operational burden, and mitigated risk. The client no longer needs to expend internal resources on daily FX orders and instructions.

Fully Automated FX

Resources

Solutions That Work Together

In addition to Foreign Exchange Overlay expertise, these solutions help streamline your entire fund operations.

Fund Administration
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Banking
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Business Process Outsourcing
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Fund Financing
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Global Custody
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