KAS BANK, a specialist provider of securities services to the UK pension industry, has launched a new currency overlay solution.
KASHedge will provide pension schemes with a consistent method for predicting and managing currency risks.
This will grant pension schemes full control over their hedging strategies whilst providing transparency and creating cost efficiencies.
By enabling clients to implement one currency hedge based on the aggregate currency risks across the full portfolio, cost efficiencies are proven to be profitable of up to 10 basis points, research by KAS BANK found.
The solution is specifically designed to provide bespoke and tailored currency overlay service for schemes of all sizes and giving pension funds first time access to ‘look-through technology’.
Meanwhile, for pension schemes with pooled investments, KASHedge identifies exposure to aggregate currency risks across the full portfolio.
Additionally, the online nature of the platform will allow scheme managers and their consultants or advisors to play an active monitoring role by accessing the dashboard directly, KAS Bank revealed.
Matthijs Verweij, business development risk solutions, commented: “With a proven track record in custody, reporting and administration services, KAS BANK is best placed to calculate specific currency exposure in portfolios.”
“Our commitment to fintech development in the pension industry means we’re able to work closely with best in class partners and deliver unique solutions as custodian, fund accountant or ‘data hub’.”
“Ensuring our services meet the changing needs of our clients is at the core of our proposition and with our experience in the Dutch pension market, we are confident that KASHedge will solve currency hedging complexities and support the overall progression of the UK pension sector.”
Pat Sharman, UK managing director at KAS BANK, noted: “Trustees in the UK market are increasingly under pressure to demonstrate high governance standards of pension schemes with subsequent reporting.”
“As a fintech innovator, we want to assist with these challenges across the investment cycle and believe adoption of the latest tools and working with leading fintech partners is the most efficient and accessible way to do so.”
Friso Postma, MatchingLink managing partner at KAS BANK, added: “KAS BANK has proven to be an excellent partner to develop a currency implementation of our artificial intelligence solution.”
“Innovative thinking, agile working and the ability to think the startup way, have been very valuable to us. The implementation process has resulted in a solution we are all very proud of.”
.jpg)