Overlay demand hits new peak

Some pundits have called for a 40% correction for the dollar -- bringing the need for effective management of FX risk into sharp focus. Overlay is the management of currency risk separately from the underlying assets in a fund’s portfolio.

"The past 12 months have been our best period for new business ever -- and we’ve been offering overlay as a standalone product for 14 years now," said Harriett Richmond, head of currency overlay at JP Morgan Fleming Asset Management in London.

A senior FX of