U.S. Bank Introduces Passive Currency Hedge Service for Institutional Investors

Rhea-AI Summary

U.S. Bank has launched a new passive currency hedging service aimed at asset managers and owners as part of its Global Currency Management solutions. This innovative tool offers institutional investors a fully automated and scalable approach to portfolio and share class currency hedging, incorporating advanced technology from Lumint Corporation. It allows clients to mitigate FX volatility while maintaining asset performance. The solution also features comprehensive reporting and analytics to track performance, thereby streamlining currency management and reducing operational costs for clients.

Positive

• Introduction of a new passive currency hedging service enhances U.S. Bank's Foreign Exchange solutions.
• Service offers automated, scalable currency hedging for institutional investors, improving operational efficiency.
• Collaborating with Lumint Corporation provides advanced technology, enhancing service capabilities.
• Includes sophisticated reporting and attribution analytics for detailed performance evaluation.

Negative

• None.

U.S. Bank announced today that it has enhanced its suite of Foreign Exchange (FX) solutions with a new passive currency hedging service to support asset managers and asset owners.

The new U.S. Bank Global Currency Management solution offers institutional investors a highly automated and scalable solution for portfolio and share class currency hedging with available look-through and index replication strategies.

The tool – powered by currency management provider Lumint Corporation’s industry-leading technology – will allow investors to enjoy full performance of their assets and protect their overall investment from FX volatility.

“By relying on U.S. Bank’s solution, our clients can eliminate the cost and reduce the operational burden of an in-house program – allowing them to focus on their core investment expertise,” said Christine Waldron, Chief Global Strategy Officer at U.S. Bank Global Fund Services.

The new rules-based Global Currency Management solution benefits investors who want to invest outside their home country but do not want to take on volatile currency risks. The robust new tool also will provide clients with sophisticated reporting and attribution analytics for evaluating performance.

“We are proud to add this market-leading currency hedging tool to the full suite of solutions that U.S. Bank offers for individuals, small businesses and corporations,” said Chris Braun, U.S. Bank Head of Foreign Exchange “This is an important part of our strategy to enhance our global offerings for institutional investors.”

For more information about U.S. Bank’s Global Currency Management solution, please visit our website.

About U.S. Bank

U.S. Bancorp, with nearly 70,000 employees and $554 billion in assets as of December 31, 2020, is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The Minneapolis-based bank blends its relationship teams, branches and ATM network with mobile and online tools that allow customers to bank how, when and where they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial and corporate, and investment services customers across the country and around the world as a trusted financial partner, a commitment recognized by the Ethisphere Institute naming the bank one of the 2020 World’s Most Ethical Companies. Visit U.S. Bank at www.usbank.com or follow on social media to stay up to date with company news.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210125005693/en/

FAQ

What is U.S. Bank's new Global Currency Management solution?

U.S. Bank's Global Currency Management solution is a new passive currency hedging service designed to help asset managers and owners manage portfolio and share class currency risks.

How does the Global Currency Management solution benefit institutional investors?

The solution offers a highly automated and scalable approach to currency hedging, reducing operational burdens and costs for investors.

Who developed the technology behind U.S. Bank's new currency hedging service?

The new service is powered by Lumint Corporation, which provides industry-leading currency management technology.

What features does the new currency hedging service offer?

The service offers automated currency hedging, look-through strategies, index replication, and sophisticated reporting and attribution analytics.

When was the Global Currency Management solution announced?

The Global Currency Management solution was announced on January 25, 2021.