FX Overlay

FX Overlay

We integrate and administer all components of a passive currency hedging program (share-class or portfolio overlay), as well as provide FX execution services.


  • Through our approach, you retain all investment management discretion, while outsourcing administration and FX operational functions to BNY Mellon.


  • Our currency administration solution provides you with the opportunity to re-deploy valuable resources so you can focus on your primary mission along with the potential to reduce operational risk and exposure. We offer:

    • A passive service
    • A disciplined approach to calculating and executing currency hedging strategies
    • Predefined hedging and pricing parameters
    • Comprehensive reporting
    • A service that is supported with proprietary software and a global operating model


  • BNY Mellon provides alternatives to support your FX execution requirements, such as:

    • A direct interface with trade order management system
    • Execution of FX transactions against a pre-determined benchmark


Our Thinking


FX Overlay with BNY Mellon

Currency hedging strategies help funds to mitigate currency volatility risk. Fund investors are becoming increasingly aware of this risk and are asking more questions about a fund’s currency hedging program. In addition, the execution, timing and capabilities around a currency hedging program can have a significant impact on the end investor’s implicit costs.

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