Currency management

Manage complex currency risks

The challenge

Currency volatility in an international portfolio can sometimes swamp the return expected from the underlying asset portfolio. We have experience designing and implementing cost-effective currency management strategies with a goal to reduce uncompensated risk. Currencies may also present opportunities to enhance the return of a client's total portfolio.

The Russell Investments advantage

As a global leader in the provision of currency management strategies, we have experience meeting the needs of sophisticated institutional clients globally. With nearly £50 billion in assets in currency strategies¹, we offer a full suite of currency management solutions including passive, dynamic and absolute return currency strategies.

In addition, we offer a unique pure-agency currency execution service designed to reduce currency execution costs, improve transparency and reduce operational burden for clients.

Russell Investments was named the winner of the “Currency Manager of the Year” at the 2019 European Pensions Awards.

Offering a broad suite of currency solutions

Passive currency hedging

Currency hedging can reduce or eliminate the foreign exchange volatility from holding international assets. An investor would hedge by selling foreign currencies that are implicitly included in an international portfolio and buying the domestic currency.

Dynamic currency strategy

While our passive currency strategy is exclusively focused on reducing the risk associated with exposure to non-base currency, our dynamic currency strategy supports the dual investor goals of risk reduction and return enhancement. Our dynamic currency strategy goes a long way to solving the conundrum of what, when and how much currency exposure to hedge.

Absolute return currency strategy

Academic research suggests that currency factors strategies can offer meaningful and relatively uncorrelated return sources. Our Absolute Return Currency Strategy (ARCS) has been designed as a transparent rules-based strategy which gives diversified exposure to the currency factors of Carry, Value and Trend.

A trading approach which supports best execution and fiduciary alignment


Agency FX trading

Unlike a principal trading provider, Russell Investments does not have a proprietary trading book. Our currency management strategies are supported by an Agency Foreign Exchange (FX) trading approach, where liquidity providers compete for our order flow and we pass execution benefits directly to you, including savings related to reduced bid/ask spreads, market impact and custodian charges.


Together or individually, these currency strategies are designed to lower transaction costs, improve portfolio risk-return profile and reduce the operational burden of managing FX.

Significant global scale and resources, available as an extension of your team²

90+

Investment professionals
located globally

35 years

Experience in
implementation services

100+ markets

Ability to
trade

Article

Volatile times call for currency management

Many global investors are evaluating their currency exposure, and associated investment strategy. We have provided a short thought piece around currency management in a volatile market.

Read now

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Learn more about our implementation solutions

Transition management

We help clients to manage their risks and investment performance when restructuring their portfolios or asset classes.

Outsourced trading

Delivering client-centric, flexible solutions while employing the latest advances in technology to find liquidity pools that reduce transaction costs and manage risk.

Overlay services

This is an essential tool for managing large pools of capital as derivative overlays help manage risk elements and improve performance.

Any opinion expressed, is not a statement of fact, is subject to change and does not constitute investment advice.

The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

Any past performance figures are not necessarily a guide to future performance.

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