Our Insights

Delivering Increased Transparency and Cost Savings to a Mid-Sized Independent Asset Manager

An independent asset manager contacted RBC Investor & Treasury Services (RBC I&TS) to learn more about our share class hedging capabilities. They were looking for a cost-effective solution which would allow them to monitor the quality of trade services and execution.

The Solution

We conducted several workshops with the asset manager to ensure we had a full understanding of their current outsourcing arrangement and provided an overview of our standalone currency overlay solution, including a series of data visualization tools which allow clients to perform oversight and monitor trade execution.

Next, we performed a complete Transaction Cost Analysis (TCA) on the asset manager’s share class hedging performance over the past year on all relevant FX transaction types, including:

  • FX forward hedge rollovers
  • Outright rebalancing trades (spot and forward)
  • Transfer agent swaps
  • P&L conversion swaps

The Benefits

The TCA highlighted key differences in their current provider's FX spot execution process for outright rebalancing trades and execution quality across all transaction types when compared against RBC I&TS’ standalone currency overlay services offering.

We provided a competitive commercial proposal for share class hedging on a standalone basis which included potential cost savings in excess of USD 1.5 million.

For More Information

To learn more, contact us or get in touch with your RBC I&TS representative.