Media

FX Week Europe: Investors warned to be prudent on EM currencies

Record Currency Management CIO Bob Noyen, panellist at the FX World Europe Conference in London, argues that markets need time to transition to a more stable equilibrium, and investors should therefore be wary of rushing into new currencies.

Please see article at: http://www.fxweek.com/fx-week/news/2130222/europe-investors-warned-prudent-em-currencies

Financial World: Breaking Up is Hard to Do

Letter from Record Chairman Neil Record on "legal tender" FX contracts. That is, a contract to buy or sell not one currency for another but one country's legal tender on the date of delivery for another

See letter http://fw.ifslearning.ac.uk/Archive/2011/Decemberjanuary/Comment/Letters.aspx

Global Money Management

Article saying that hedged options in funds denominated in foreign currencies are becoming a top priority for Swiss investors after the franc's rough ride during the summer months. Includes a casestudy of Pensionskasse des Bundes PUBLICA who use Record as the overlay manager for its fixed income portfolio.

To find the article, please click here (requires subscription)

Source: GMM Quarterly/iiSEARCHES

Financial News: Here's a euro solution: go back to the drachma

Neil Record discusses a possible fracture of the Eurozone if Greece were to re-instate the drachma.

Please see article at: http://www.efinancialnews.com/story/2011-10-17/euro-solution-drachma-greece (requires subscription).

Financial News: Record opens a multi-track fund

Newspiece on Record's new multi-strategy fund which combines active and passive investment strategies.

Please see article at: http://www.efinancialnews.com/story/2011-10-03/record-opens-multi-track-fund (requires subscription).

FTfm: Custodians come under fire over 'excessive' FX profits

Part of a FTfm special feature on investing in foreign exchange, the FT looks at the 'unfolding saga' as pensions funds in the US bring lawsuits against custodians over 'excessive' profits on foreign exchange. Article explains the process Record uses to audit FX transactions on behalf of such pension funds.

Please download pack from http://media.ft.com/cms/7df62810-ebc1-11e0-943a-00144feab49a.pdf  (requires subscription)

Currency Investor Magazine: Currency hedging that delivers smarter risk management

Magazine-length feature on currency. Considers topics such as passive hedging, active hedging, currency as an active class, performance analytics and a regional report.

For a flash version of the magazazine please click here.

To download a pdf please click here.

FTfm: Beta ways to avoid getting rolled over

Article discussing the use of the currency forward rate bias as a source of beta returns from a passive strategy. Quoting Record CEO James Wood-Collins on the three sets of return-seeking opportunities in currency markets

Please see article at: http://www.ft.com/cms/s/0/9551d18e-eaaa-11e0-aeca-00144feab49a.html#axzz1ZjJWfNUx (requires subscription)

FTfm: Is half an umbrella better than none?

Article on unattributed gains due to currency and the risks of leaving them unhedged.

Please see article at: http://www.ft.com/cms/s/0/3f5329ca-e37c-11e0-8f47-00144feabdc0.html#axzz1ZjJWfNUx (requires subscription)

Global Investor Magazine

Article argues that EM bond investors 'should be most worried about the weakening of the region's currencies' as since 2002 over half of EM bond returns for dollar investors come from currency strengthening against the dollar.

To find the article, please click here (requires subscription)

Investment News: Developed-market currency concern taking center stage

Article citing Record Chief Executive James Wood-Collins on the importance of the Euro as a concern with clients.

Please see article at: http://www.investmentnews.com/article/20110925/REG/309259991 

Pensions & Investments: Developed Market Currency Risk in Equity Portfolios

Article quotes Record Currency Management's data on the impact of currency risk in equity portfolios. Since 2002, the MSCI Europe Australasia Far East index in U.S. dollar terms increased by 48%. Of that, about 43% came from foreign currency appreciation against the dollar.

Please see article at: http://www.pionline.com/article/20110919/PRINTSUB/309199973#ixzz1YWsIO63R (requires subscription)

Funds Europe

Record CEO James Wood-Collins talks about the contribution of the currency component to the total return from EM equities and bonds.

Please find article at: http://www.funds-europe.com/supplements/current-issue/10034-market-access-youre-hired (requires registration)

FX Week

Taking stock of 2011: the buy side. Interview with Record CEO James Wood-Collins.

Please see article at: http://www.fxweek.com/fx-week/feature/2108143/taking-stock-2011 (requires subscription).

FTfm: Movers and Shakers

Announcing the appointment of Chris Adair.

Please see article at: http://www.ft.com/cms/s/0/60149f5e-d7bf-11e0-a06b-00144feabdc0.html#axzz1XwK7QHLk (requires subscription).

Reuters TV

Record CEO James Wood-Collins talks on the Swiss Franc and the Swiss National Bank.

Please find video at: http://link.reuters.com/kuc63s

Eurohedge: Avon appoints Record

The $4bn Avon Pension Fund - one of the UK's leading hedge fund investors among local authorities - has appointed Record Currency Management to handle active currency hedging.

Please see article at: http://www.hedgefundintelligence.com/IssueArticle/2894850/EuroHedge-Past-Issues/UKs-Avon-appoints-Record.html  (requires subscription).

Parkiet.com

Record CIO Bob Noyen makes the argument that the Czech Koruna may be a new safe-haven currency.

Please see article (in Polish) at: http://www.parkiet.com/artykul/1089362.html

Bloomberg 

The Czech koruna is poised to be one of the next havens if Europe's debt crisis worsens, argues Bob Noyen, CIO of Record Currency Management, and CEO James Wood-Collins.

Please find article at http://www.bloomberg.com/news/2011-08-18/czech-koruna-may-be-next-franc-before-euro-qe-record-plc-says.html

Reuters Fund View

Record Currency Management expects more investors to pull money out of funds based on a strategy that exploits widening interest rate differentials and which have racked up heavy losses as the rates of major currencies stay low.

Please find the article at: http://uk.reuters.com/article/2011/08/15/uk-fund-forex-record-idUKLNE77E02020110815

Annual Professional Pensions currency panel featuring Record CIO Bob Noyen.

To download, please click here

Investment Week

Javier Corominas, head of economic research at Record Currency Management, examines whether beta or risk premium returns are available in currency.

Please find article at: http://www.investmentweek.co.uk/investment-week/feature/2095730/currency-return-achievable

Currency Investor Website

The latest published survey of the FX and derivatives market from the Bank for International Settlements (September 2010) confirmed that over $4 trillion is traded on currency markets daily. Currency continues to be the most liquid and tradable asset market in the world, with daily turnover estimates to be more than seven times that of global equities. This article looks at the current state of the foreign exchange market. Certain patterns emerge: the continued rise of emerging markets and slow decline in the market share of the US dollar, a concentration in the geographical distribution of trading and the increase in volume of conventional instruments (largely attributed to the rise of algorithmic and online platform trading).  

Please see article at: http://www.currency-investor.net/article/51/currencies+-+still+the+most+liquid+and+tradable+asset+market+in+the+world

HedgeWeek

Record launches the Euro Stress Fund.

Please see article at: http://www.hedgeweek.com/2011/06/27/122386/record-currency-management-launches-euro-stress-fund

Is there a beta in currency? James Wood-Collins, CEO of Record Currency Management makes the Expert View for pensionsinsight.co.uk

Click here to download

Pensions Insight.co.uk 

Article by Maggie Williams argues that making the most of currency, both for hedging and return seeking, requires a new approach.

"While diversifying equity investment overseas might help to reduce portfolio risk, fluctuations in the value of the currency in which the overseas investments are held relative to sterling will affect the value of those investments - and that is an unrewarded risk.

Please see article at: http://www.pensions-insight.co.uk/story.asp?sectioncode=61&storycode=463645

Pensions & Investments Online

James Wood -Collins, CEO of Record Currency Management, discusses how currency volatility resulting from the increase in exposure to international equities by US investors and what strategies they can use to off-set this.

Please see article at: http://www.pionline.com/article/20110413/REG/110419974 (requires subscription)

Financial Times fm - Currencies create a buzz for fund heads

Peter Garnham, Currency Correspondent at the Financial Times, quotes Neil Record on the investment environment for currency

Please see article at:  http://www.ft.com/cms/s/0/4c2b96f8-5c4c-11e0-8f48-00144feab49a.html#axzz1UoIsYyMr (requires subscription)

IPE April 2011

Neil Record, Record's founder, writes in IPE  that the Bank of England's bias towards low rates correlates with a political imperative to inflate away public and financial sector debts. Does this mean Whitehall now controls monetary policy?

Please see article at: http://www.ipe.com/magazine/how-independent-is-the-old-lady_39986.php?s=neil%20record

Reuters TV

Record CEO James Wood-Collins talks to Reuters' Axel Threlfall on asset allocation.

Please find video at: http://insider.thomsonreuters.com/link.html?cn=share&ctype=group_channel&chid=3&cid=204352&shareToken=Mzo4MmY2YjMyZS0wMzdiLTQ0OTItYmEwOS02ZTVlZjczM2I2YWE%3D

Engaged Investor - March/April 2011

"Looking after the pounds".

Please see article at: http://www.engagedinvestor.co.uk/story.asp?sectioncode=107&storycode=463295

Financial Times - the logic of an EM currency bet

Emma Boyde, Online editor of FTfm, discusses the returns available from Emerging Markets Currency and Record Currency Management's fund.

Please see article at: http://blogs.ft.com/beyond-brics/2011/02/28/fund-file-logic-of-an-em-currency-bet/#axzz1UoJluip8 (requires subscription)

Financial Times fm

Steve Johnson, Deputy Editor of FTfm, reports that  investors seek investment strategies that can deliver consistent positive returns and that Emerging Market currency investment may provide a solution.

Please see article at: http://www.ft.com/cms/s/0/1170ed2e-4112-11e0-bf62-00144feabdc0.html#axzz1UoIsYyMr (requires subscription)

Financial Times

John Authers quotes Neil Record arguing the case for currency as an asset class

Please see article at: http://www.ft.com/cms/s/0/a8259c68-2b4d-11e0-a65f-00144feab49a.html (requires subscription)

Currency as an independent return source

The conventional wisdom is that, in international investment, taking currency risk along with underlying equity or other market risk is generally unrewarded - and therefore that hedging some or all of that currency risk is an efficient use of the investor's risk budget. This consensus is well supported by the evidence - namely that taking random currency exposure (determined by your international asset allocation) is a zero-sum return which adds to risk.

Can we quantify the risks and returns that investors have faced in their deficit-financing activities over 30+ years ?  Until six months ago, we could not.  But now FTSE, the global index provider, has created the FTSE Currency FRB5 series of indices, which track the Forward Rate Bias (FRB) since 1978

For the article by Neil Record, please find the link at: http://www.ipe.com/asia/currency-as-an-independent-return-source_35753.php?articlepage=1

Investments and Pensions Asia

Article on the Forward Rate Bias as an independent source of return.

Please dowload article here