Currency Hedging

How can asset managers and asset owners hedge their investments in non–base currency securities using currency hedging techniques?


To support you in your foreign exchange journey, Societe Generale has rallied expertise across multiple business units to develop a complete range of FOREX services focusing on Best Execution, efficiency, consistency, transparency and cost effectiveness. We aim to help you seize new business opportunities and quickly adapt your FX strategy to specific hedging needs.

The SGSS foreign exchange offering includes three solutions:

  • Share Class Hedging: When looking to grow your business by distributing funds in new markets whose currencies are different from the base currency of your funds, share classes must be issued in these currencies. However, FOREX volatility may impact their net asset value. SGSS can help you offer your investors solutions to mitigate this risk by automatically hedging these share classes based on subscriptions and redemptions of fund units.

  • Portfolio hedging: When looking to expand the scope of your investments, you may want to include assets priced in various currencies in your portfolio. However foreign exchange movements could affect their value. To reduce the risk of FOREX rate swings between the currencies in which your foreign assets are listed and your fund base currency, SGSS offer an automated portfolio hedging service.

  • Multiple currency hedging: Thanks to multiple currency hedging, your portfolio and your foreign investors will be largely protected from currency volatility. Indeed, multiple currency hedging is a combination of portfolio hedging and share class hedging which allows asset managers to simultaneously hedge each foreign exchange exposure of a fund and offer it in one currency different from its reference currency. In this way, you reduce the number and therefore the cost of your transactions and you are able to develop a coherent and fully integrated currency risk hedging strategy.

Discover Currency Hedging services with Societe Generale Securities Services

Key features and benefits

Our currency hedging services include hedging calculation and execution, configured according to the client’s guidelines, such as hedging ratio, roll frequency and netting option.

Once the credit line has been approved, they ensure that Societe Generale is the counterparty for all foreign exchange transactions and respects transparency principles in terms of calculation and pricing.

Our currency hedging solutions ensure that Forex OTC transactions are governed by Master Agreements with CSA.

They provide a global approach in terms of reporting (currency allocation reports, pre-trade reports, post-trade reports, hedge change reports, deal blotter, class exposure reports, etc.).

Our foreign exchange hedging services are offered in open architecture, i.e. they are available whether or not Societe Generale Securities Services is your asset servicer.

To find out more about our currency hedging services, please click below:

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