The MillTech UK Fund Manager CFO FX Report 2025

Hedging activity dips year-on-year as costs rise - despite mounting losses on unhedged exposures.

Recent data from the BIS Triennial Survey supports what many UK fund managers have seen first-hand: record FX volumes and elevated volatility are reshaping trading dynamics.

Our UK Fund Manager FX Report 2025 examines how FX risk management strategies have performed over the past year — and how funds are positioning themselves as attention turns to 2026:

• Pound volatility boosts returns: Almost all funds said Sterling fluctuations had a positive impact on their performance.
• Fresh challenges: High FX costs, forecasting difficulties, manual processes, tighter credit lines, and regulatory pressures are testing resilience.
• Strategic focus shifts: Outsourcing remains a key lever for efficiency, while improving visibility and forecasting global cash flows is top of mind.
• The FX setup of the future: Automation is now funds’ number one operational priority, while AI adoption continues to gather momentum.

 

Please refer to our Research Disclosure Page for more information on the data referred to in the above.