Tag Archives: Currency Overlay

Record Plc (ISIN GB00B28ZPS36) – I like that record too !!!

Disclaimer: This is not investment advice. PLEASE DO YOUR OWN RESEARCH !!!

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A few months ago, fellow blogger Wexboy had a very interesting post on Record Plc, a UK based “specialty asset manager”. Go and read the whole thing, it is worth it.

I try to summarize the business & background  in my own words:

Record Plc provides so-called “Currency overlay” asset management services. Currency overlays are in principle used for two reasons.

  1. To hedge an international investment portfolio into one single currency, usually the currency of the investor and/or
  2. To gain some extra yield by hedging currency exposures more “dynamically”

It is important to know that they do not manage the underlying assets, but “just” a derivative portfolio hedging the underlying assets and that they do not use their own balance sheet but act solely as an agent for the ultimate client.

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