HSBC has developed FX HEAT, a new tool for asset managers and institutional investors to independently analyse the effectiveness of their currency hedging strategies. Asset managers and institutional investors will be able to access independent reports on an automated basis to enhance the governance and oversight of their foreign exchange hedging. As a leading provider of outsourced FX risk management services, HSBC’s FX Services team worked in collaboration with an independent quantitative specialist to develop FX HEAT (‘FX Hedge Efficiency Analytics Tool’).
Vincent Bonamy, HSBC’s Head of Global Intermediary Services, Markets & Securities Services, said: “Investors want more clarity than ever before during uncertain times. They want to understand the costs and the risks associated with currency hedging for their fund portfolios. FX HEAT can help clients strengthen their own internal governance with independent oversight of their FX strategies’ performance.”