Metzler Bank has secured a currency overlay mandate from a clerical pension fund. The pension fund, which is a member of the ”Arbeitsgemeinschaft kommunaler und kirchlicher Altersversorgung“ (Community of Municipal and Church Retirement Pensions). In 2016 it won the award of the industry magazine Portfolio Institutionell in the category ”Best Pension Fund“. The jury praised the funds efficient organisation in particular, but also the quality, transparency and monitoring of all its decisions. Beyond its own organisation, the pension fund outsources complex activities to external specialists, including mandating the management of FX risks arising from investments to Metzler Capital Markets in March 2019.
The volume of the FX overlay mandate for Metzler Bank is more than EUR 1 billion. ”We appreciate the confidence placed in us by our client, which reflects the success of our currency strategies,“ says Mario Mattera, the partner responsible for the Capital Markets division at Metzler Bank. ”Our systematic hedging strategy allows efficient and cost-effective management of FX risks without sacrificing the opportunity to participate in positive price performance,“ explains Özgür Atasever, Head of Currency Management at Metzler Capital Markets. “More and more clients are asking for systematic FX management because regulatory transparency requirements have become stricter and FX risks have grown significantly,“ Atasever continues. Furthermore, centralized FX management not only leads to absolute transparency of all FX risks and FX transactions but also to significantly reduced transaction costs thanks to netting and meticulous cost control.
In 2017, Metzler Currency Management won the Currency Manager of the Year award at the European Pensions Awards in London, prevailing over reputable competitors. This award recognizes investment firms, advisors and service providers from all over Europe who have set professional standards to best support European pension funds in an increasingly challenging market environment.
Metzler Capital Markets’ currency management provides clients with various FX management options. Services range from passive and active management of FX risks to a risk-adjusted investment strategy that invests globally in attractive high-yield currencies. Throughout In all management approaches, the investor’s individual risk profile is always taken into account.
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