National Custodian Services (NCS) is set to launch a foreign exchange currency overlay product to help superannuation funds cope with fluctuating exchange rates.
"Over the past two years, currency markets have been extremely volatile which heavily impacted overseas returns. In response we introduced a passive currency overlay product this year," National Australia Bank (NAB) Asset Servicing executive general manager Leigh Watson said.
As a result of super fund demand, NCS will look at adding more products, Watson said.
"We plan to further enhance our currency product range in 2010," he said.
The NAB-owned organisation will also look to further leverage of its alliance with Bank of New York Mellon (BNY Mellon) bringing more products to the marketplace.
"To support our clients' evolving demands, we will work with our partner BNY Mellon to expand our range of products and services," Watson said.
"This will be an ongoing process to that we feel is critical to match customer demands and ultimately maintain our number one position in the Australian market."
In the coming year, due to further consolidation in the industry, impending findings of the Cooper and Henry reviews, NCS is expecting tax and management implications for its clients, he said.
"Clients' focus on corporate governance, trading costs and tax issues are expected to continue. As a result, our focus and investment on enhancing our platforms will continue," Watson said.
