In their guest article in Private Banking Magazin 02/2025, Jasper Düx and Holger Bang analyse the growing relevance of FX Overlay strategies for institutional investors.
In an environment of increased market volatility and geopolitical uncertainty, passive currency management is no longer sufficient. Instead, tailored FX Overlay solutions offer the opportunity to manage currency risks in a targeted manner without changing the strategic asset allocation. Through the use of active FX Overlays, investors can not only reduce risks, but also improve the efficiency and diversification of their portfolios.
The article shows how professional currency strategies can help make portfolios more resilient to external shocks while also securing operational advantages such as predictable cash flows.