As the pension industry grows and continues to move toward offshore assets, the need for pensions to manage FX settlement risk is critical. 

Under pressure to deliver higher returns, pensions are increasing foreign investments to gain access to foreign markets with higher yields, resulting in a greater exposure to foreign currency in their portfolios. With this comes the potential for increased exposure to FX settlement risk.

Our unique payment-versus-payment FX settlement solution – CLSSettlement – can help pensions better manage this risk while delivering operational efficiencies and best-in-class liquidity management.

Our data suggests that more and more pensions globally are using CLSSettlement to mitigate settlement risk. We have seen significant growth in the value of FX transactions settled on behalf of pension funds globally, an increase of approximately 40% and over 75% in the Asia Pacific region.

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