FX hedging: art or science?

FX hedges provide vital protection on precious returns, but can be tricky to arrange, mainly due to liquidity restraints. This discussion explores the purposes of FX hedges, who is best placed to do them, how to tackle liquidity constraints, and setting up hedges internally or using an outsourced provider.

Panel

• Moderator: Alice Murray, The Drawdown
• Hans Jacob Feder, managing director, global head of FX services, MUFG Investor Services
• Malcom Goddard, CFO/COO, Zetland Capital
• Matt Lowman, Head of Treasury and Fund Management, Pantheon

The Drawdown (TDD): What is the purpose of FX hedging?

Matt Lowman (ML): There’s definitely an element of horses for courses when it comes to hedging.