top of page

Proxy hedging   

Historically Institutional Investors have faced challenges with mitigating currency risk in Emerging Markets due to a lack of viable hedging solutions.

Audere has considerable experience in managing the currency risks that arise when investing in emerging markets and has run proprietary investigations on alternative hedging techniques to mitigate risk in exotic currencies. A typical client engagement process consists of: (i) assessing the challenge of hedging your emerging market FX exposures, and (ii) evaluating the effectiveness of proxy hedging, usability, and cost profile via our specialist programmes. 

 

Subject to the currency pair in question, our proprietary proxy hedging solution helps institutional clients to: 

  • Implement a hedging solution in a traditionally non-deliverable market,  or one that is too costly 

  • Risk reduction significantly exceeds the cost of implementing our proxy programme 

  • Delivers consistent hedging performance in different market behaviors

  • Reduce performance drag and thereby increase rates of return. 

bottom of page