Dynamic hedging is designed to protect international portfolios from unwanted currency movements without relying on fixed positions or subjective judgement. It works by automatically adjusting hedge ratios as market conditions change, using measurable inputs such as volatility, momentum, and price trends.
Record’s approach responds to current market signals with clear, rules-based actions. Hedge levels increase when risk indicators rise, and reduce when conditions stabilise. This keeps protection in place when it matters most, while limiting unnecessary hedging costs over time.
Static hedges can either leave too much risk on the table or create long-term performance drag. Dynamic hedging offers an alternative that adapts without introducing complexity. It works in the background, continuously recalibrating exposure without the need for constant oversight. This efficiency is especially valuable for pension funds, insurance portfolios, and sovereign allocators managing multi-asset positions across currencies.
Record plc (LON:REC) develops bespoke, high-quality, sophisticated solutions for institutional investors, a unique offering stemming from Record’s knowledge and expertise gained from its core currency hedging markets.
