SIGLO believes that costs for asset management and investing in general play an important role. An often underestimated cost factor is the spreads on foreign currency (FX) transactions. SIGLO therefore offers a statistical analysis for measuring all costs of FX transactions, both spot and forward transactions as well as roll transactions for hedging FX exposures. SIGLO already analyzed more than 15'000 FX transactions of pension funds for a volume of more than 200 billion CHF.
The main idea is to analyze not just individual FX transactions, but an entire sample of FX transaction statistics and its distribution in the form of histograms as the picture on the right side shows. In the SIGLO FX Audit we assume that FX spreads are normally distributed in the course of a day on average, and that therefore a sample of spread adjusted FX transactions should also be normally distributed around the daily mid prices of FX pairs.