Currency Management

With one of the industry’s deepest and most experienced currency management teams, we can help you understand and manage your currency exposures and risk.

Our experience

A global team of 18 dedicated and highly experienced currency portfolio managers and traders focused on tight risk management, efficient execution and operational robustness.

$197B

Currency AUM ^*

390+

Client accounts globally ^*

$1.9T

Traded in 2025

36 Yrs

Managing currency strategies

Monthly Commentaries

August

A softer dollar, but not yet a bear market

Strategies

Across developed and emerging markets, we offer solutions that can help clients manage currency risk and shape portfolios to support their strategic objectives.

Approach

Description

Passive Hedging

Static Passive Hedging

• Treats all currencies identically
• Maintains a consistent hedge ratio
• Focused on reducing currency exposure

Dynamic Hedging

Tailor your hedge to your specific risk and return objectives using four dynamic building blocks

Value – Capture long-term mispricing and mean reversion across currency cycles.

Carry – Capture country risk premia embedded in currency markets.

Safe Haven – Seek protection during periods of market stress and heightened uncertainty.

Cyclicality – Position for currency moves associated with the economic cycle.

The four building blocks can be used individually or combined in different proportions to create bespoke dynamic hedging solutions aligned with client objectives.

Source: State Street Investment Management as of 31 August 2026.

Meet the team

Aaron R Hurd

Senior Portfolio Manager

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Matthew Nest

Global Head of Active Fixed Income

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Footnotes

Disclosure

Important Risk Information

For Institutional /Professional investors use only.

Marketing Communication.

State Street Global Advisors World Wide Entities

Investing involves risk including the risk of loss of principal.

Currency Risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Investment Management express written consent.

The views expressed in this material are the views of the EMEA Fixed Income Specialists of State Street Global Advisors Global Fixed Income Group and are subject to change. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the applicable regional regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator or applicable Swiss regulator) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication.

The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor’s particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor.

Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.

Investments in emerging or developing markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio's sustainable strategy criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's sustainable strategy criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.

All information is from State Street Investment Management unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.