BNY Mellon to Provide Passive Hedging Support for Portfolios Linked to Global Indices

New capability expands iHedge-based currency hedging administration service provided by BNY Mellon Global Markets

Dec 01, 2010, 08:25 ET from BNY Mellon

NEW YORK, Dec. 1, 2010 /PRNewswire-FirstCall/ -- BNY Mellon Global Markets today announced an enhancement to its existing currency hedge administration offering to include passive currency hedging support for portfolios linked to global indices.  

BNY Mellon Global Markets introduced its currency hedge administration service several years ago using BNY Mellon's proprietary iHedge platform to provide passive currency overlay strategies and share class hedging programs to global institutional investors.  This new extension of BNY Mellon Global Markets' hedging administration service allows for hedging currency positions against a variety of global indices.  It was developed to help plan sponsors, investment managers and fund managers to mitigate the currency risk associated with investment portfolios that are based on, or benchmarked to, global indices.  

"Prevailing global economic conditions have added significantly to the volatility of foreign exchange rates," said Ed McGann, head of foreign exchange fund services sales for BNY Mellon Global Markets.  "Currency volatility, in turn, can have a significant impact on global investment programs.  Investors and fund managers whose portfolios are linked to global indices are sensitive to these currency impacts.  Our iHedge platform allows us to administer passive currency hedging programs with a high degree of transparency and cost effectiveness while leaving our clients in charge of investment discretion and oversight."

BNY Mellon Global Markets includes the Foreign Exchange and Derivatives businesses of The Bank of New York Mellon together with the securities business of BNY Mellon Capital Markets, LLC, a SEC registered broker dealer.* These businesses provide products for corporate, institutional and high net worth investors to access liquidity, identify and execute investment and hedging strategies as well as manage risk.  In Asia-Pacific, BNY Mellon has trading rooms in Hong Kong, Seoul, Taipei and Tokyo offering and trading foreign exchange, money markets, foreign exchange derivatives and interest rate derivatives. In combination with FX desks in New York, Boston, Pittsburgh, London and Brussels, BNY Mellon Global Markets has access to more than 100 currency markets, and is recognized by industry publications as a global leader in FX research and FX technology.  Additional information is available at www.bnymellon.com/globalmarkets/currencyhedgeadmin.html.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets.  BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team.  It has $24.4 trillion in assets under custody and administration and $1.14 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day.  BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).  Additional information is available at www.bnymellon.com.

* BNY Mellon Capital Markets, LLC is an indirect-wholly-owned subsidiary of The Bank of New York Mellon Corporation and a member of FINRA and SIPC.

SOURCE BNY Mellon



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