UK - New York-based currency manager FX Concepts has been mandated by the £900m Kodak Pension Plan to run £380m in currency overlay from December 1, 2001.
The GBP-based currency overlay program hedges an MSCI-like portfolio back to a 50%-hedged GBP benchmark.
In 1987, the Eastman Kodak pension fund awarded FX Concepts a mandate to manage the currency exposure of its pension plan - one of the first currency overlay mandates ever undertaken
Other well known pension funds such as Bell South, the World Bank, Schlumberger and the San Diego Public Employee' Retirement System also feature on FX Concepts’ client roster.
In addition, some of the largest banks in the world - such as ABN Amro, JP Morgan/Chase, UBS Warburg, Société Générale, Deutsche Bank and HSBC - outsource currency risk to FX Concepts.
FX Concepts was founded in New York in 1981 by John R. Taylor Jr., ex-head of Citibank Corporate Foreign Exchange.
FX Concepts' approach employs a model-based trading system, overlaid with a discretionary allocation, within strictly confined parameters, to portfolio managers and regular monitoring by an investment committee made up of the firm's top research and portfolio management professionals.
* Late last year Frank Russell was appointed by Kodak to run a £40m global equity mandate.
By Luke Clancy
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