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WHAT WE DO

FX Overlay

MUFG FX Overlay (FXO) solutions provide an outsourced, non-discretionary rules based hedging service, addressing the challenges faced by clients when mitigating Foreign Exchange (FX) exposures within a portfolio or hedged share classes.

FXO offers FX hedge calculation, execution, reporting and monitoring to provide a comprehensive, flexible, cost effective and transparent currency overlay solution for asset managers and asset allocators (pensions) in addition to supporting multiple types of fund structures. FXO is designed to reduce the FX risk of foreign currency denominated share classes (share class hedging) and portfolios containing foreign denominated exposures (portfolio hedging). MUFG utilizes its bundled offering to support both scenarios.

Services Offered

        • Reduce the FX risk of foreign denominated share classes to better track the main share class.
        • Hedge foreign currency denominated assets of a portfolio back to the base currency.
        • Provide hedging of underlying portfolio positions and net with a share class offering.
        • Ability to mimic industry offered indexes, such as, MSCI World Index.