On October 18, our colleague Elske van de Burgt presented at PMAR West in San Diego on “The Principles for Currency Management”. With the use of a practical case study, Elske demonstrated that currency exposures potentially add a lot of volatility to the portfolio with little or no risk premium. Therefore managing the currency risk is important. The PowerPoint presentation explains the underlying principles of currency risk and strategies to hedge against this risk. Also the impact this has on the performance of the portfolio and how to separate the impact from currency risk on overall performance is explained using examples. These examples range from simple base currency analysis to local return and the use of risk premiums. In addition to this more advanced approaches, like hedged returns and the measurement of currency overlay programs are addressed.
07 June 2023
PRESS RELEASE: U.S. public sector pension plans brace for more economic shocks
U.S. public sector pension plans are planning ahead for the potential impact of further economic and market shocks, a new report from Ortec Finance shows.
Why stocks could be in the red this year and what to do about it
It hasn’t been since 2000 and 2001 that U.S. stock markets lost money in two consecutive years, but it’s something that could potentially happen again this year. Ortec’s modelling is pointing to negative equity returns over the next 12 months as the most likely market scenario. Pension funds with tactical or dynamic allocations at their disposal may want to temper their risk and consider fixed income instead.
Ortec Finance discusses with Responsible Investor on why high-quality climate data is essential for investors to map progress toward emission reduction goals and enable a successful transition to net-zero.
The Railways Pension Scheme is one of the UK’s largest and longest established pension funds. Our client case story highlights how we’ve enabled Railpen to take a holistic view of investments across multiple asset classes through our partnership with Burgiss.