Currency management for institutional investors
We focus on foreign exchange (FX) trading and currency risk management. We trade FX as an agent and fiduciary to help investors achieve their best execution objectives while managing an important legal obligation. Together or individually, these currency services are designed to lower transaction costs, minimize risk and reduce the operational burden of managing FX.
Foreign exchange tradingInattention to FX transactions can detract from investment performance. Our agency FX program helps clients manage costs, improve transparency and minimize counterparty risk.
Acting on your behalf, we:
- Reduce costs by netting your transactions and trading as an agent
- Improve transparency by time stamping every transaction and showing the cost of execution
- Align our interests with yours by acting as a fiduciary
- Manage counterparty risk by trading with over 20 banks
You can take advantage of our foreign exchange trading services whether you handle currency needs internally or delegate them to your investment managers.
Fiduciary approach to foreign exchange trading
To help reduce foreign exchange transaction costs, some investors use third parties to manage currency trading. Historically, that's been a principal, such as an investment bank, who fills the order from the principal's own account. More recently, some investors use an agent who acts on the investor's behalf, getting rates from several providers and selecting the best one.
But some investors use an agent who is also a fiduciary. That's important because investors are worried about regulators who have become much less patient with those who don't manage all of their costs–including costs to trade foreign exchange–effectively. Investors can manage this regulatory risk by delegating responsibility to a currency trading agent who is also a fiduciary.
Russell Investments Implementation Services, LLC., member of FINRA, SIPC. www.finra.org
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.