UK - Currency overlay managers failed to add value for the second consecutive quarter, according to BNY Mellon Asset Servicing.
Alan Wilcock, manager, performance and risk analytics, BNY Mellon Asset Servicing, said 2007 was a rollercoaster year for most investment types, with the summer proving a turning point for equities, bonds and property.
He said: "Currency overlay managers had a similar turning point, with their second half losses almost wiping out the first half gains."
Currency overlay managers did not perform well in the medium term either. According to BNY Mellon's figures three and five year annual returns stood at a negative -0.23% and 0.03% respectively.
BNY Mellon cited an increase in the demand for currency overlay managers as the allocation to overseas equities had increased from 18.6% to 26.4% over the decade.
The survey analysed the returns of 17 asset managers with a combined US$93bn under management.
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