United Nations Relief and Welfare Agency, Amman, Jordan, is considering applying a currency overlay on its total international exposure, said Stephen Nash, chief, provident fund secretariat.
The nearly $1 billion provident fund now is managed against the J.P. Morgan World Government Bond index on a 55% hedged basis. But the fund’s five global bond managers, who run more than three-quarters of fund assets, sometimes conflict on currency policy and tend to offset one another. Mr. Nash hopes to generate about one percentage point a year in excess returns through a coherent currency policy.
The fund’s board will reconsider the issue this fall. The board also did not decide whether to seek an outside consultant.
