Cognitive Corporate Finance, has recently entered partnership with Deaglo (www.deaglo.com), a global tech-enabled currency risk management firm, to provide institutional investors and corporates with FX hedging strategy assessment and execution at reduced costs. This reduction of costs helps to enhance the returns of stakeholders in a given transaction.
Deaglo specializes in portfolio level FX hedging as well as foreign share classes that need to be regularly hedged back to base currency. Additionally, Deaglo assists funds looking to launch or set up share classes in different currencies. The primary tangible benefits that Deaglo brings to potential clients include:
- Pricing the FX rolls materially cheaper than what the client is currently paying with their current bank, thereby enhancing final returns to investors.
- Backed by large FX partners that are willing to post collateral on behalf of Deaglo’s clients, in most cases Deaglo’s clients will not have to post any initial margin / collateral against their FX hedges (often times no variation margin is required either). Given that many funds typically need to post between 5%-10% initial margin against their FX hedges, this can free up significant cash flow for their clients (in addition to the cost savings).
- Deaglo also offers consulting / hedge optimization services, cost analysis for funds’ existing FX hedging programs, and proxy hedging for ‘difficult to hedge’ currencies.“We believe Deaglo’s offering can bring fund managers or corporates in our network extra value through reduced costs, when hedging currency risk in their overseas transactions or onboarding foreign investors.” Charles Thoma, Managing Partner of CCF, said.During the current market volatility, we have seen a stronger need for GPs, CFOs and asset managers to think about currency risk hedging, which is closely tied to investment return and safety of their own or client’s capital. We welcome corporate and investors of any size to come assess and optimize their currency risk hedging strategy.” Matthew Fotheringham, Partner EMEA of Deaglo, said.
During the current market volatility, we have seen a stronger need for GPs, CFOs and asset managers to think about currency risk hedging, which is closely tied to investment return and safety of their own or client’s capital. We welcome corporate and investors of any size to come assess and optimize their currency risk hedging strategy.” Matthew Fotheringham, Partner EMEA of Deaglo, said.