News

Currencies as part of a long-term investment strategy

Defining and managing a global portfolio’s currency allocation is a key factor in driving long-term risks and returns. In our consulting practice we often find that our clients (and the banks and asset managers that advise them) do not pay enough attention to currency exposures or, alternatively, focus too much on short-term considerations and market timing of exchange rates. onValues does not believe in short-term market timing and supports clients in defining a global currency allocation that is in line with their risk/return profile and is part of a truly long-term investment strategy. As an input, we use different approaches based on long-term scenarios and macro-economic indicators. We are critical of commonly used approaches based on currency allocations of global benchmarks such as MSCI’s World or All Country World indices, given the fact that many global corporations generate more revenues abroad than in their home country. In addition, onValues provides an ongoing monitoring of currency markets informing clients of likely major market dislocations. This, in turn, is an input for revising the client’s long-term currency strategy or for measures aimed at reducing downside risk.

News

  • It’s time for our economic system to acknowledge interdependence

    Read more

  • onValues endorses Club of Rome call to action

    Read more

  • Learning from the corona crisis and staying the course on climate change

    Read more

  • Can investments contribute to protecting biodiversity?

    Read more

  • Switzerland on the move!

    Read more

  • A total portfolio approach for promoting peace (SDG 16)

    Read more

  • Assessing Swiss pensions funds' responsible investment practices

    Read more

  • What's behind an acronym

    Read more

  • Is ESG investing at threat from rising populism and protectionism?

    Read more

  • Engaging with others in support of field building and strategic initiatives

    Read more