Northern Trust Adds Berenberg Models to Currency Hedging Suite

Northern Trust has added Berenberg to its framework of dynamic currency hedging solutions, enabling the bank’s clients to incorporate third-party currency management strategies, such as Berenberg’s AI based models, into their range of risk management choices.

Northern Trust’s dynamic currency hedging solution allows clients to adjust hedge ratios based on real-time market conditions and model-driven forecasts. By incorporating capabilities from solutions such as Berenberg’s, the bank says its clients can choose to add models that complement their investment strategies, helping them to reduce volatility and improve risk-adjusted returns.

The solution is available across the US, UK, Europe, Australia, and Canada, and is designed to support both asset owners and asset managers.

“As we start to see increased volatility in markets and data-driven strategies become more critical, our clients are increasingly seeking novel solutions to manage currency risk,” says Marcus Fernandes, global head of currency management at Northern Trust. “With dynamic currency hedging, we’re offering clients greater optionality when it comes to currency management.”

Berenberg’s proprietary FX alpha and risk models are designed to capture market signals and support dynamic risk management within currency hedging strategies. Nico Baum, head of solutions at Berenberg, explains, “Our approach is designed to help investors make more informed hedging decisions in an increasingly technology driven and complex global environment.”