Pension fund managers: Better beta from FX

Allocating a far greater proportion of their assets to foreign exchange is one way pension fund managers can help solve the widely predicted global pension crisis, according to Bilal Hafeez, managing director, global head of FX strategy at Deutsche Bank.




“When foreign exchange is viewed as a separate unconstrained source of total returns, it should take a share in global portfolios, possibly comparable to those of bonds and equities”

Bilal Hafeez,
Deutsche Bank



Deutsche Bank believes forex could help solve the global pension crisis.

In a research note entitled Currencies: pensions saviour? Hafeez says that although FX has often been viewed as an alternative asset class it should now be considered as comparable to bonds and equities.

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