FX Markets

 
FX hedge ratios decline as pandemic volatility recedes

FX forward hedge ratios among the top 10 US mutual fund managers have on average declined over the past three quarters. The average hedge ratio was 26.24% in the second quarter, down from 34% in Q3 2020. This suggests the top 10 firms hedged a smaller proportion of their assets over that period, which has coincided with FX volatility slowly returning to pre-Covid 19 levels. The hedge ratio is calculated by taking the US dollar amount of forwards traded by a fund in a quarter and dividing that figure by the firm's total reported assets, with the latter only including assets from sub funds that trade FX forwards.

Access the data

Upcoming Events

Growth and stability

After enduring a turbulent period in 2018 and 2019, when Invesco suffered damaging fund outflows and its share price underperformed rivals, the outlook for the asset manager has stabilised. Assets under management at Invesco have returned to growth and stood at $1.4 trillion in March, a 20% increase in the last 12 months.

Read the full article

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: