BNY Mellon Global Markets has enhanced its existing currency hedge administration offering to include passive currency hedging support for portfolios linked to global indices.

BNY Mellon Global Markets introduced its currency hedge administration service several years ago using BNY Mellon’s proprietary iHedge platform to provide passive currency overlay strategies and share class hedging programs to global institutional investors.

This new extension of BNY Mellon Global Markets’ hedging administration service allows for hedging currency positions against a variety of global indices.

According to the company, it was developed to help plan sponsors, investment managers and fund managers to mitigate the currency risk associated with investment portfolios that are based on, or benchmarked to, global indices.

BNY Mellon Global Markets head of foreign exchange fund services sales Ed McGann said prevailing global economic conditions have added significantly to the volatility of foreign exchange rates. Currency volatility, in turn, can have a significant impact on global investment programs. Investors and fund managers whose portfolios are linked to global indices are sensitive to these currency impacts.

"Our iHedge platform allows us to administer passive currency hedging programs with a high degree of transparency and cost effectiveness while leaving our clients in charge of investment discretion and oversight," McGann said.