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Share Class Hedging

We offer a systematic hedging solution for your share classes

CACEIS offers a turnkey systematic solution for share class hedging, in line with ESMA's recommendations for over-hedging under-hedging, monitoring frequency and rebalancing.

«Benefit from CACEIS expertise and a turnkey solution by outsourcing share class hedging activity»

Kaïs Haj Taieb - Group Product Manager

Product details:

  • Hedging of subscription / Redemption flows

    -If hedging conditions are met, an FX SWAP or an FX Forward are put in place between the currency of the hedged share class and the fund’s base currency, with maturity at the end of the on-going period.

    -Option: FX spot for the outstanding amount between pre-advice and final advice flow.

  • Hedging adjustments due to market evolutions

    - Calculation of the theoretical adjustment according to the rules defined and in line with ESMA recommendations.

    - FX Forward between the currency of the hedged share class and the fund’s base currency, with maturity at the end of the on-going period.

  • Rollover of Hedging transactions reaching maturity

    Rollover of hedging transactions reaching maturity through an FX SWAP with new maturity date set at the end of the next period.

  • Reporting

    - Daily reporting on
    the FX transactions of the day: the “Daily hedging deals”
    Report on the outstanding FX forward positions : “Outstanding hedge forwards”.

    - Reporting at each renewal period of the hedge contracts with the calculation of the foreign exchange P&L linked to each roll: “Share class hedging calculation P&L”.