Specialised. Independent. Responsible.
7orca is one of the few asset managers specialising in overlay strategies, with a clear focus on managing the currency risks of institutional investors. The company operates independently of banks and brokers and assumes operational, strategic and tactical responsibility within the FX Overlay mandate.
Implementation is rules-based, evidence-based and fully system-driven, supported by 7orca’s proprietary, highly automated infrastructure. 7orca’s investment process framework has been audited in accordance with ISAE 3402 Type II. Clients receive not merely a solution but a transparent and auditable hedging architecture that meets regulatory requirements as well as economic objectives.
Currency fluctuations affect not only a portfolio’s return profile but also its risk budget and regulatory positioning. Without targeted management, unintended risk exposures may arise, creating planning uncertainty or increasing the effort required for risk reporting.
Acting as the interface between the capital management company, the depositary and the broker, 7orca manages the entire hedging process and ensures efficient integration into existing value chains. This is achieved without imposing an additional operational burden on the investor.
Multi-stage. Evaluation-based. Rule-based.
At 7orca, the FX Overlay strategy is derived not from standardised parameters but through a structured, scientifically grounded decision-making process. This takes into account the individual exposure profile, currency-specific characteristics and current market conditions. The objective is consistent, transparent and economically sound management – for each currency, each segment and each mandate.
Exposure management.
The foundation of every FX overlay strategy.
Data-driven. Structured. Consolidated.
An effective FX overlay begins with a valid understanding of the actual currency risks within the portfolio. To achieve this, 7orca establishes an integrated exposure management process that systematically consolidates all relevant data sources – from the investment management company and asset managers through to the investor – validating and aligning them along the way.
The result is comprehensive transparency across all currency positions – regardless of portfolio structure, asset class or investment liquidity. Misallocations are identified, corrected and centrally reconciled, creating a consistent and reliable data foundation for subsequent management.
Key features of exposure management at 7orca
- Transparency at single-investment level – including illiquid or non-listed assets
- Automated plausibility checks of position data through multi-level control systems
- Standardised connections to over 300 asset managers and all leading investment management companies as well as central administrators
- Netting across vehicles, segments and levels to reduce operational complexity
- Ongoing revalidation of FX exposure within the daily reporting cycle
At 7orca, exposure management is not treated as a secondary process, but as an active component of overlay management. It is the prerequisite for efficient hedging, regulatory compliance and targeted risk allocation.
Implementation.
Planned. Efficient. Smooth.
Clear processes. Technical depth. Operational security.
The implementation of an FX overlay mandate at 7orca follows a proven, tightly managed project plan. The objective is to establish a fully integrated hedging architecture within a matter of weeks – regulatory compliant, operationally robust and tailored to the specific mandate structure.
Mandate structuring
The mandate structure provides for the centralised management of all FX risks within a dedicated FX overlay segment – with the aim of ensuring optimal implementation, centralised control and minimal operational effort for the investor.
Implementation project
FX overlay solutions are implemented within a structured project framework – ensuring a smooth and efficient mandate set-up.
Best execution
Execution quality is a key driver of overall FX overlay performance. That is why we put a strong focus on the execution process.
Instrument selection
7orca is unrestricted in its choice of hedging instruments and applies those that are most efficient within the prevailing framework.
Counterparty management
The monitoring and management of counterparty risk is a key component of our FX overlay management.
Liquidity management
7orca’s liquidity management ensures funds are always available for margin calls and hedging transactions. Daily portfolio valuations and CF@R forecasts provide early visibility and control of liquidity needs.
Monitoring regulatory limits
7orca automatically monitors regulatory limits such as the 20% ratio under AnlV or Solvency II requirements on a daily basis. By specifically comparing balance sheet thresholds and regulatory limits, risks are identified early and actively managed.
Client-specific requirements – for example under IFRS or the German Commercial Code (HGB) – are directly integrated into the hedging strategy and continuously monitored. This not only ensures compliance with legal regulations, but also helps to deliberately reduce potential balance sheet pressure.
The benefit for institutional investors: maximum transparency, regulatory relief and an FX overlay solution that remains consistently on course – both operationally and in terms of regulatory compliance.
Reporting & transparency.
Data clarity enables effective decision-making.
Clarity. Relevance. Governance
Transparency is a key success factor in institutional currency management. 7orca provides its clients with fully integrated reporting – tailored to regulatory requirements, internal processes and individual analysis needs. The reports highlight the risks, decisions and value contributions of the FX overlay mandate – on a daily, weekly or monthly basis.
By fully mapping all hedging positions at currency, segment and strategy level, it is possible to see at any time how the FX overlay affects earnings, risk and balance sheet structure. The reporting is generated directly from our own system architecture and can be flexibly integrated into existing IT and controlling structures.
Performance features of FX overlay reporting at 7orca
- Daily, weekly or monthly delivery – tailored to the requirements of the mandate.
- Granular evaluation by currency, strategy component and asset category.
- Clear separation of earnings contributions from overlay and investment – basis for traceable performance attribution.
- Transparent presentation of hedge ratios, remaining maturities and the development of exposures.
- Optional: simulations, stress tests and cash flow projections.
All reports can be structured in accordance with regulatory requirements such as AnlV, Solvency II or CRR and supplemented with individual reporting sections – including visualisations, PDF packages or database-based interface integration.
Assessment. Methodology. Benefits.
Systematic management of currency risks.
In the area of FX Research, 7orca provides a precise and structured overview of how currency risks can be managed through FX Overlay strategies. Foreign currency risks are often an unintended but material consequence of internationally diversified portfolios. Through its currency management, 7orca provides clients with a basis for focusing internal resources on core business areas, liquidity planning and strategic objectives.
Exposure at a glance.
Key figures. Reach. Networking.
7orca's FX overlay mandates are based on sound, globally oriented exposure management. This approach enables institutional investors to precisely manage currency risks and link existing strategic positions with tactical hedge quotas. The following key figures demonstrate 7orca's international reach and institutional network: broad currency coverage, active monitoring of a wide range of investments and established interfaces with leading asset managers worldwide. They illustrate the operational basis on which 7orca implements efficient currency management – independently of asset management and precisely tailored to the respective portfolio structure.
23
bn EUR
Assets under Management
1000
bn EUR
Trading volume and FX Execution
200000
FX transactions
Execution experience in currency management
Interesting facts about FX Overlay.
Terms. Definitions. Applications.
Key terms relating to the 7orca FX Overlay explained briefly and concisely.
Successful together.
Trust. Dialogue. Partnership.
7orca makes institutional currency risks manageable – independently, data-based and with a high degree of implementation depth. Whether it's an initial orientation meeting, concrete mandate planning or an individual simulation of your exposure: our FX overlay specialists are available for an in-depth discussion.
Next steps
- Get an overview of the mandate architecture
- Request a simulation of the impact of your FX exposure
- Evaluate strategic overlay components together
