What is Currency Overlay?
Currency Overlay is a cost-effective solution to neutralise the impact of currency movements on international investments. NAB Currency Overlay provides you, the investor, with the ability to formulate your hedging strategy without the operational burden of implementation.
How Currency Overlay Works
Investors, including asset managers and superannuation funds, determine the currency exposure they wish to hold within their fund. NAB Currency Overlay calculates the hedges required to align the foreign currency exposure to the level determined by the investor.
Foreign exchange forwards, with a typical maturity of 1 to 3 months are established to hedge any undesired currency exposure. These hedges are periodically rebalanced to ensure the hedges are aligned to the investor’s strategy. Any profit or loss on the hedges is settled upon maturity providing the investor with a hedged return approximating the return of the underlying asset, adjusted for interest rate differentials and transaction costs.
Features of this service
NAB Currency Overlay offers investors and asset managers a range of services to meet their needs.
Billions under management
Over $50 billion of Assets Under Management (AUM)
Dedicated team
Dedicated Currency Overlay team established in 2008
24-hour support
24-hour desk servicing Asia Pacific, North American and European Investors
How NAB can help
NAB Currency Overlay assists investors and asset managers with tailored, low cost, transparent and rule-based hedging solutions allowing investors to focus on the underlying investments. NAB Currency Overlay specialises in portfolio and share class hedging and is a leading provider of currency overlay in Australia with a deep understanding of the requirements of Australian investors and asset owners.
Contact Us
Reach out to NAB Currency Overlay to see how they can optimise your foreign exchange hedging, available on a 24-hour day desk servicing:
- Sydney: + 61 2 9293 7195
- New York: + 1 212 916 9648
- London: + 44 207 710 2973
- E-mail: currencyoverlay@nab.com.au
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Terms and Conditions
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The information provided in this webpage is intended to be of a general nature only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information that you read on this webpage, National Australia Bank Limited (ABN 12 004 044 937, AFSL and Australian Credit License 230686) (NAB) recommends that you consider whether it is appropriate for your objectives, financial situation and needs. NAB recommends that you seek independent advice and obtain and consider the relevant Product Disclosure Statement (available at Financial Markets or by calling 1300 960 355), before acting on any information on this webpage, including whether to acquire or to continue to hold a product or service mentioned.
The products on this webpage are issued by NAB.
Please consider our Financial Services Guide.
The Target Market Determination for this product is available at nab.com.au/TMD.