Many pensions and endowments, two-thirds of those included in a recent survey, report that they have no process in place to monitor, independently, whether their custody banks are getting them fair foreign exchange rates.
The survey, conducted by FX Transparency LLC, a consultancy with offices in the US and Australia, finds that nearly all (98%) of external asset managers do not trade restricted currencies for onshore delivery. Rather, they leave the trading to the custodian.
Joe Conlan, head of business development for FX Transparency, expressed concern that pensions investing in emerging markets have made . . .
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