Client Type: Family Office
Sector: Multi-Asset Portfolio
Location: Asia
Challenge:
Cross-border investments exposed the family to unmanaged FX risk (USD, EUR, AUD, SGD). Hedging was ad hoc, costing performance and increasing capital inefficiency.
Solution:
- Built a strategic FX overlay framework using forwards and collars
- Matched hedge tenors to expected liquidity events (e.g., real estate disposals, private capital calls)
- Integrated tax and accounting considerations into trade design
Result:
- Reduced FX drag without over-hedging
- Improved cash flow predictability and balance sheet transparency
- Created an evergreen hedging strategy tailored to the family’s specific liquidity and risk profile
Value Delivered:
Reduced hidden costs and aligned risk exposures to the family’s objectives, with clear governance and flexibility.