Skip to main contentSkip to navigationHome | Contact Us | Français | Secure Zone | CIBC.com | CIBC Websites
Currency Management

Currency Management

picture of office buildings

Why Active Currency Management?

Our Distinctive Belief: Persistent currency market inefficiencies exist. We believe we can achieve consistent alpha with managed risk by:

  1. Efficiently investing in a broad universe of currencies, including emerging markets
  2. Integrating a variety of transparent quantitative factors with actionable fundamental research
  3. Managing portfolios with seasoned judgment

Our Currency Management Capabilities

Absolute Return Pure Active (Unconstrained)

Focusing on absolute return, this approach allows clients to:

  • Take an active view in the currency market through the integration of quantitative and qualitative research
  • Add a diversifying alpha source with low correlation to traditional asset classes
  • Implement as an overlay or in a stand-alone sleeve

Active Hedging (Constrained)

Providing an efficient combination of active and passive elements, this approach allows clients to:

  • Take market conditions and prospects for each currency into consideration when hedging
  • Assign a small amount of risk to a diversifying alpha source based on underlying foreign exposures
  • Avoid being locked into a specific hedge ratio

Passive Hedging

Passive hedging can be appropriate for clients with limited resources to implement a dynamic approach and seek to:

  • Better match near-term liabilities covered by foreign assets
  • Reduce both losses and gains on foreign exposure

To learn about our currency management strategies, send an email to institutional@cibc.com