London (ots/PRNewswire) -
Statistics released today by BNY Mellon Asset Servicing show that
Currency Overlay funds had mixed results in the first quarter of
2008. During the quarter, excess returns ranged from 4.48% to -2.38%,
and the overall median return was -0.01%.
However, BNY Mellon Asset Servicing's latest Currency Overlay
Manager Profile Analysis for the quarter ending 31 March 2008 reveals
that these managers did add value over one and three year periods,
and funds achieved median excess returns of 0.40% and 0.07% p.a.
respectively. BNY Mellon Asset Servicing's analysis shows that
managers also added value over the longer term, and over five years
to 31st March 2008, managers achieved an average outperformance of
0.21% p.a. Currency overlay managers were even more successful over a
10-year period and the median excess return was 0.30% p.a.
Funds are increasingly at risk from currency fluctuations due to
rising investment in overseas assets, and the use of currency overlay
managers allows pension schemes to hedge against these fluctuations
in exchange rates. The impact of currency fluctuations was
particularly notable during Q1 2008 when sterling fell against both
the euro and the yen, by 8.5% and 12.4% respectively.
Commenting on the results, Nick Rogers, BNY Mellon Asset
Servicing's Senior Technical Specialist, said: "During the first
quarter, Dynamic managers were poor performers with a mean return of
-0.5%; however this was offset by a strong performance from Technical
managers. Euro managers were predictably strong performers during Q1
2008, whilst overall weakness was as a result of negative
performances from UK, Japanese and US currency managers."
The use of currency overlay managers allows pension schemes to
hedge against fluctuations in exchange rates. This means that where
an investment performs well in local terms, but there has been an
adverse movement in exchange rates, the scheme will still benefit
from the investment performance. Over the last 10 years we have seen
proportions in overseas equities rise from 18.7% to 25.5% and as a
result, currency overlay strategies have become increasingly
important for UK pension funds.
BNY Mellon Asset Servicing's Currency Overlay Manager Profile
Analysis includes accounts from 17 separate asset managers with a
total asset value in excess of US$89 billion. Each quarter, BNY
Mellon Asset Servicing publishes the results of this analysis and
examines the overall excess returns achieved by active currency
overlay managers against benchmark, across different styles, hedge
ratios and base currencies. The results of this survey have now been
published for the quarter ending 31 March 2008.
Notes to editors
BNY Mellon Asset Servicing offers clients worldwide a broad
spectrum of specialised asset servicing capabilities, including
custody and fund services, securities lending, performance and
analytics, and execution services. BNY Mellon Asset Servicing
provides services through The Bank of New York, Mellon Bank, N.A. and
other related companies.
The Bank of New York Mellon Corporation is a global financial
services company focused on helping clients manage and service their
financial assets, operating in 34 countries and serving more than 100
markets. The company is a leading provider of financial services for
institutions, corporations and high-net-worth individuals, providing
superior asset management and wealth management, asset servicing,
issuer services, clearing services and treasury services through a
worldwide client-focused team. It has more than US$23 trillion in
assets under custody and administration, more than US$1.1 trillion in
assets under management and services US$12 trillion in outstanding
debt. Additional information is available at bnymellon.com.
Web site: http://www.bnymellon.com
ots Originaltext: BNY Mellon Asset Servicing
Im Internet recherchierbar: http://www.presseportal.ch
Louisa Bartoszek, +44-20-7163-2826, firstname.lastname@example.org,
for BNY Mellon Asset Servicing