According to the announcement, the enhancement adds passive currency hedging support for portfolios linked to global indices.
BNY Mellon Global Markets introduced its currency hedge administration service several years ago using BNY Mellon’s proprietary iHedge platform to provide passive currency overlay strategies and share class hedging programs to global institutional investors. According to the announcement, the new extension of BNY Mellon Global Markets’ hedging administration service allows for hedging currency positions against a variety of global indices.
The firm notes that it was developed to help plan sponsors, investment managers and fund managers to mitigate the currency risk associated with investment portfolios that are based on, or benchmarked to, global indices.
“Prevailing global economic conditions have added significantly to the volatility of foreign exchange rates,” said Ed McGann, head of foreign exchange fund services sales for BNY Mellon Global Markets “Currency volatility, in turn, can have a significant impact on global investment programs. Investors and fund managers whose portfolios are linked to global indices are sensitive to these currency impacts. Our iHedge platform allows us to administer passive currency hedging programs with a high degree of transparency and cost effectiveness while leaving our clients in charge of investment discretion and oversight.”
BNY Mellon Global Markets includes the Foreign Exchange and Derivatives businesses of The Bank of New York Mellon together with the securities business of BNY Mellon Capital Markets, LLC, a SEC registered broker dealer. Additional information is available at www.bnymellon.com/globalmarkets/currencyhedgeadmin.html.