HSBC has launched FX HEAT, a tool for asset managers and institutional investors to independently analyse the effectiveness of their currency hedging strategies. Users can access independent reports on an automated basis to enhance the governance and oversight of their FX hedging. HSBC’s FX services team worked in collaboration with an independent quantitative specialist to develop FX HEAT (FX Hedge Efficiency Analytics Tool). FX HEAT will also enable investors to assess on an ongoing basis the quality of HSBC’s FX hedging and its impact on their returns.
FX HEAT provides clients with a detailed overview of the performance divergence contributors between currency hedged and non-currency hedged investment returns. These include a series of market-driven and operational factors. FX HEAT is also set to be integrated by year-end into HSBC Evolve, HSBC’s single-dealer FX execution platform.