Currency Management

When it comes to managing currency exposures, its all about balancing risk as you attempt to
generate returns.
Whether your investment objective is portfolio hedging, share class hedging or a combination of
the two, our currency management services seek to provide a comprehensive and effective
solution.
To help you minimize risk, reduce costs and increase efficiency, we take direction from you to
implement the hedging strategy and execute foreign exchange transactions in response to
portfolio and share class valuation changes, investor subscriptions and redemptions, and FX
trade settlements.

A solution built around you

With more than 20 years experience providing currency management services to some of the
worlds largest fund managers, we understand the challenges our clients face and weve
developed an end-to-end solution to help our clients meet them.
Well then customize that strategy to meet your specific objectives and help make sure you get
the best outcome from your hedging program:

Before implementation, well work with you to determine and document in a currency
management agreement with State Street the optimal parameters for your hedging
program using detailed insight from our analytics team

Youll benefit from our automated, straight-through process, and close collaboration with
data agents both of which may significantly reduce potential for operational risk and
miscommunication

You can expand your program at any time with our scalable systems which are also
designed to manage the most complex of processes

From beginning to end, youll have total transparency and can take advantage of our suite
of operational reports to meet your own monitoring and reporting requirements for
hedge details, time-stamped execution and performance analyses

Transition Management
Managing risk in todays increasingly complex and volatile markets is essential in controlling the
cost of change.
Whether youre changing investment managers or shifting asset allocation, we have both the
depth of experience and breadth of capabilities to help you reach your target state efficiently. We
offer a robust range of services, acting as both a dedicated agency broker-dealer and interim asset
manager.
We will work with you from start to finish to design a seamless strategy, restructure your assets
and deliver the new portfolio to your target fund managers. We assess risk dynamically
throughout the transition with the goal of reducing overall costs, all while providing transparency
around our process and execution.
Our project planning and strategy development will guide you from beginning to end in the
transition process, and all the milestones in between. At the onset, our pre-trade reporting will
provide you with detailed cost analysis, so there are no surprises.
At the end of each transition youll get a summary of the entire process and a full breakdown of
costs to compare with our pre-trade estimates.

Maintain performance through your transition

As we work with you to design and create your new portfolio, you can also take advantage of our
other solutions to help you maintain liquidity and performance.

Interim exposure management our interim exposure management delivers an

effective exposure bridge designed to reduce the costs and risks incurred over the whole
transition event. As youre transitioning assets, well customize a target exposure with
your risk preferences, balancing tracking error and benchmark with expected costs.

Cash equitization we maintain market exposure for your portfolios uninvested cash
by overlaying the excess cash balances held by managers, along with any plan-level cash,
to a targeted market exposure.

Liquidity management to minimize your transitions drag on your portfolio, well

help you manage your cash. With our size and access to one of the largest sources of
natural crossing liquidity, you can reduce trading costs like commissions, spreads and
market impact.