DEALING WITH EXPOSURE
What can institutional investors – whose portfolios have an increasingly international dimension – do to tackle the precise challenge of managing currency risk, bearing in mind that genuine ‘turnkey’ solutions do not exist? Boasting a track record spanning more than 20 years, Time Invariant Portfolio Protection (TIPP) manages currency exposure both systematically and flexibly. This portfolio insurance technique, based on a risk allocation model, is implemented using predefined parameters taking into account clients’ risk profiles and underlying currencies. Whether considering performance, volatility or risk, the results yielded by this approach substantiate its claims.
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