Robert (Bob Martin is a Senior Vice President and Senior Investment Analyst with Mesirow Wealth Management Bob works with individuals families business owners and not-for-profit entities to create comprehensive wealth management strategies Bobs responsibilities also include due diligence of investments and strategies in client portfolios Bob also provides investment and market commentary for the…

Rocky Pontikes is a Senior Managing Director and Co-Head of Mesirow Investment Banking In this capacity he provides strategic direction and oversight for the group and manages its day-to-day operations He is also responsible for developing key relationships leading deal teams throughout the transaction process and providing advisory services on middle-market M&A assignments Rocky has more…

Ronald Palumbo Jr is a Trading Associate in Mesirow Currency Management He is a member of the team responsible for execution of the entire suite of institutional currency programs He implements foreign exchange execution strategies during Asian trading hours Ronald has more than 30 years of experience in the foreign currency markets Prior to joining Mesirow he worked in trading roles at Newedge…

Ryan Fedronich is a member of the Private Equity Investment Committee and is involved in all aspects of the private equity investment process Prior to joining Mesirow in 2007 Ryan was an Investment Banking Analyst in the consumer and retail group at Banc of America Securities in Chicago Ryan earned a Bachelor of Arts with high honors from Michigan State University and a Master of Business…

Sabrina Emert is a Wealth Advisor in Mesirow Wealth Management She is responsible for helping her team create comprehensive financial plans for individuals and families to help them accumulate grow protect and distribute their wealth Sabina has five years of experience in the financial services industry Prior to joining Mesirow in 2021 Sabrina worked as a Financial Solutions Advisor at Merrill…

November 24 2024 |, By, Mesirow Currency Management, Why do US and Swiss pension funds use different currency risk strategies, When natural disasters strike or danger looms people seek safe havens Investors behave similarly During global turmoil they transfer funds to stable countries such as Switzerland or the United States This increases demand for Swiss francs and US dollars causing these safe haven currencies to appreciate significantly  As a result Swiss and US investors face substantial losses in their…, Currency Fluctuations, Investors in safe haven currency countries such as Switzerland and the US often experience declines in their international investments due to the gradual depreciation of foreign currencies or sudden currency fluctuations Swiss investors usually hedge this currency risk while US investors choose not to Figure 3 presents the downward trend of the British pound against the Swiss franc a movement…, Domestic market size , Swiss investors have a small domestic market for investment and so a large percentage of investments – about half of their assets in 2023  – are in international assets Complementa a consultant firm supporting institutional investors estimates that Swiss pension funds hedge about two-thirds of their currency exposure  US investors on the other hand have a massive domestic market in which to…, Equity exposure, Bond exposure, Domestic 61% 90% International 31% 10%   FIGURE 5 US PENSION FUND EXPOSURES 2023 Source Thinking Ahead Institute https//wwwthinkingaheadinstituteorg/content/uploads/2024/02/GPAS-2024pdf Lower exposure to currency volatility reduces pressure to hedge currency risk However taking advantage of short-term currency swings and episodic volatility can deliver incremental returns and improve a portfolio’…, Risk and Regulations, Regulations also influence Swiss pension funds’ sensitivity to risk That’s because a federal law and an ordinance ensure that every employer has a pension fund (or participates in a joint pension scheme guaranteeing minimum benefits These pension fund regulatory requirements can promote a desire to reduce risks including those contributed by currency fluctuations  In the US a pension scheme for…, Central bank interventions, From September 2011 to January 2015 the SNB pegged the franc to the euro to improve the competitiveness of Swiss exports to European customers The central bank held the exchange rate steady at 12 Swiss francs to the euro (Figure 1 essentially hedging euro currency risk for Swiss pension funds and exporters for free The unexpected withdrawal of the peg on 15 January 2015 shocked the currency…, So you’re saying, US and Swiss pension fund managers face different currency risk situations The Swiss franc trends upward against many currencies (Figure 7 exerting consistent downward pressure on the value of international investments denominated in weaker foreign currencies  For Swiss pension fund managers hedging this currency risk is prudent Furthermore portfolios with significant exposure to currency risk…, Advantages of hedging currency risk, Investors are constantly seeking more investment opportunities and international assets offer attractive returns As investors increase their allocations to international assets their exposure to currency effects will also rise This increased currency exposure means that investors can benefit from a currency risk management program  The program can enhance returns through exposure to selected…, Explore more currency insights, BRICS finds a way to thwart the West, New technology is giving BRICS an advantage in the competitive cross-border payments race Read article, US debt is headed to unimaginable levels, Since 1990 debt crises have erupted periodically but the next one may not be so easy to dismiss Is a financial reckoning coming Read article

Sam Gruer is a Managing Director in Mesirow Public Finance He specializes in serving Northeast and Southeast clients who issue general obligation and revenue-backed bonds  Additionally Sam serves as co-head of Mesirow’s Defeasance Solutions group Sam is a 30+ year veteran of the industry with broad experience as a banker municipal advisor and trader/structurer of both defeasance and derivative…

Sam Hershman is a Director in Mesirow Investment Banking He is responsible for leading the day-to-day transaction execution process in food beverage and agribusiness consumer and eCommerce business services and distribution and supply chain Sam began his career as an Analyst in Mesirow Investment Banking in 2013 where he worked in roles of increasing responsibility until 2018 He rejoined the…