RBC Dexia Investor Services has launched a passive FX hedging service. Like other passive hedging programmes, it is designed to protect client investments against currency translation risk.
To be competitive a passive hedging solution has to provide low-cost best execution with flexible processes that can be transparently monitored. RBC Dexia reckons it has those boxes ticked and says it “offers transparent pricing and client-driven execution times that provide liquidity matching and fund valuation consistency, with complete flexibility to hedge at different levels of fund hierarchy.”
Morgan McDonnell, head of FX markets and product at RBC Dexia, says: “Our new hedging service is a major step forward in terms of offering our clients a highly flexible and customisable outsourced solution for their portfolio hedging needs. Using our service will allow them to create tailored hedging strategies that are perfectly aligned with their investment performance objectives.”
Clients will be able to outsource responsibility for data capture, currency hedging calculations and transaction reporting to RBC Dexia, as well as the generation, execution and settlement of trades.