CODE THE LAW. MOVE THE MONEY.
SAMPLE
FX position diagnostic · monthly
As of Aug 31, 2026 · KFI-FX-2026-08-031
AAA Trading Co. · FX position diagnostic
Prepared for: AAA Trading Co., Treasury · Prepared by: KustodyFi Market Structure
Measurement window: Sep 1, 2024 to Aug 31, 2026 (24 months, 494 trading days) · Data: daily market average rate · Backtested
FX assets ₩61,200,000,000 · FX liabilities ₩8,900,000,000 · Net FX assets ₩52,300,000,000 · Rebalancing: Wednesdays 14:00, ±1.5%p band
SUMMARY
Allocation policy backtest · 2-year cumulative gain
+3.86B
Same net assets ₩52,300,000,000 · same window · net of execution costs (1.5bp per leg)
Annualized+₩1.93B
P&L volatility9.4% → 7.9% (16% lower)
Days ahead63% (311 of 494 trading days)
PORTFOLIO COORDINATES · MARKOWITZ EFFICIENT FRONTIER
0% 2% 4% 6% 4% 8% 12% Annual volatility Annual return Efficient frontier USDJPYEURKRW Minimum variance Legacy mix Allocation policy
Each dot: a currency at its realized 2-year annual return and volatility vs. KRW, carry included. KRW, the base currency, sits at the origin. ◆ legacy mix → ● allocation policy: the coordinate moves up within the same risk.
Current position · Aug 31, 2026
Net FX assets ₩52.3B
CurrencyHoldingsWeightPolicy
USD₩23,540,000,00045%45%
JPY₩11,510,000,00022%21%
EUR₩9,410,000,00018%22%
KRW₩7,840,000,00015%12%
Settlement floors and the 45% per-currency cap are satisfied · within the ±1.5%p band
All client names, positions and P&L in this report are samples. Figures are backtested on measured history and do not guarantee future performance. Decisions and execution stay with the client. KFI-FX-2026-08-031 · 1 / 7
CODE THE LAW. MOVE THE MONEY.
SAMPLE
FX position diagnostic · monthly
As of Aug 31, 2026 · KFI-FX-2026-08-031
Position measurement · coordinates by currency
CurrencyWeightAnnual returnAnnual volCarry vs KRW
USD45%5.9%11.2%4.3%
JPY22%2.8%10.1%0.3%
EUR18%4.1%9.0%2.9%
KRW15%0.0%0.0%0.0%
◆ Legacy mix100%4.8%9.6%
● Allocation policy100%5.4%7.9%
Annual return = FX move + deposit carry over KRW, realized over 2 years. KRW is the base currency: zero return, zero volatility, at the origin.
Weights · legacy vs. allocation policy
Legacy average mix
USD 62%JPY 18%EUR 12%KRW 8%
Current allocation policy
USD 45%JPY 22%EUR 18%KRW 15%
Proposed at next review (Wed, Sep 3)
USD 45%JPY 21%EUR 22% ▲4%pKRW 12% ▼3%p
01EUR settlement demand is rising. Q4 EUR payment schedules raised the settlement floor from 15% to 19%, moving the computed weight from 18% to 22%.
02Idle KRW can come down. The liquidity gap check puts required KRW near 10%. About 3%p can move to currencies with higher computed carry.
If rebalanced to this proposal · backtested on 2 years of data+₩310M / year
The proposal is computed within your constraints. It is not a market view. Whether and how to execute stays with you.
All client names, positions and P&L in this report are samples. Figures are backtested on measured history and do not guarantee future performance. Decisions and execution stay with the client. KFI-FX-2026-08-031 · 2 / 7
CODE THE LAW. MOVE THE MONEY.
SAMPLE
FX position diagnostic · monthly
As of Aug 31, 2026 · KFI-FX-2026-08-031
Backtest · keep legacy mix vs. allocation policy (24 months)
Same net assets, same window. The policy curve is net of execution costs.
0 +₩2B +₩4B 2024-09 2026-08 Allocation policy +₩5.10B Legacy mix +₩1.24B +₩3.86B
Defense through the July 2026 move
JUL 2026

USD/KRW fell 1,552 to 1,421, an 8.4% won rally in one month. Twelve days moved more than 40bp, the fastest decline in two years. This is the measured, after-the-fact record.

0 −₩1B Jul 1 Jul 31 If legacy weights −₩1.55B Actual, policy weights −₩0.98B
If legacy mix (USD 62%)−₩1.55B
Policy mix (45% cap)−₩0.98B
Defended this month+₩570M
Nobody predicted the drop. The structure had already trimmed the concentration. We do not predict the next one either. We prepare with weights and limits.
All client names, positions and P&L in this report are samples. Figures are backtested on measured history and do not guarantee future performance. Decisions and execution stay with the client. KFI-FX-2026-08-031 · 3 / 7
CODE THE LAW. MOVE THE MONEY.
SAMPLE
FX position diagnostic · monthly
As of Aug 31, 2026 · KFI-FX-2026-08-031
Rebalancing record · executions
Weeks with executions13of 26 reviews, only past the band
Total turnover (sell side)₩9,640,000,00018.4% of net assets
Total execution cost₩28,900,000already deducted from gains
ReviewSoldBought
Wed Aug 26, 14:00Sold USD 1,100,000.00 · ₩1,568,600,000 @1,426.00Bought EUR 700,000.00 · ₩1,081,500,000 @1,545.00 · KRW ₩487,100,000
Wed Aug 12, 14:00Sold USD 900,000.00 · ₩1,278,000,000 @1,420.00Bought EUR 500,000.00 · ₩770,500,000 @1,541.00 · KRW ₩507,500,000
Wed Jul 29, 14:00Sold USD 1,400,000.00 · ₩2,030,000,000 @1,450.00Bought JPY 120,000,000 · ₩1,116,000,000 @930.00 · KRW ₩914,000,000
Wed Jul 15, 14:00Sold USD 1,600,000.00 · ₩2,377,600,000 @1,486.00Bought EUR 900,000.00 · ₩1,451,700,000 @1,613.00 · KRW ₩925,900,000
Wed Jul 1, 14:00Sold JPY 60,000,000 · ₩645,600,000 @1,076.00Bought KRW ₩645,600,000
Wed Jun 17, 14:00Sold USD 800,000.00 · ₩1,224,000,000 @1,530.00Bought EUR 600,000.00 · ₩1,003,800,000 @1,673.00 · KRW ₩220,200,000
Computed at the Wednesday 14:00 review, latest 6 shown. All 13 are provided in the appendix. Whether and how to execute stays with you.
If you had skipped · last 6 months
Of the 13 rebalances in the last 6 months, here is what skipping each of the last three would have cost.
0 +₩500M +₩1B 2026-03 2026-08 Ran all · +₩1.05B Skipped Aug 12 · +₩930M From Jul 29 · +₩740M From Jul 15 · +₩590M
Scenario6-month gainvs. running all
Ran every rebalance (13)+₩1.05B-
Skipped the last one (Aug 12)+₩930M−₩120M
Skipped the last two (from Jul 29)+₩740M−₩310M
Skipped the last three (from Jul 15)+₩590M−₩460M
The gain comes from repetition, not one big call. Next review: Wed, Sep 3, 14:00.
All client names, positions and P&L in this report are samples. Figures are backtested on measured history and do not guarantee future performance. Decisions and execution stay with the client. KFI-FX-2026-08-031 · 4 / 7
CODE THE LAW. MOVE THE MONEY.
SAMPLE
FX position diagnostic · monthly
As of Aug 31, 2026 · KFI-FX-2026-08-031
Daily performance · last 60 trading days
Aug 31 gain+₩21Mprior day −₩8M
Days ahead70%42 of the last 60 trading days
P&L volatility9.4% → 7.9% (16% lower)
0 +₩50M Jun 5 Aug 31
The daily difference between what the legacy mix would have made and what the policy made. One bar, one day.
Monthly gains · last 6 months
MonthGainCumulative
Mar 2026+₩110M+₩110M
Apr 2026+₩90M+₩200M
May 2026+₩40M+₩240M
Jun 2026+₩120M+₩360M
Jul 2026+₩570M+₩930M
Aug 2026+₩120M+₩1.05B
The July move produced more than half of the 6-month gain. Sharp moves arrive unannounced. That is why the review never stops.
All client names, positions and P&L in this report are samples. Figures are backtested on measured history and do not guarantee future performance. Decisions and execution stay with the client. KFI-FX-2026-08-031 · 5 / 7
CODE THE LAW. MOVE THE MONEY.
SAMPLE
FX position diagnostic · monthly
As of Aug 31, 2026 · KFI-FX-2026-08-031
FX cash flow this month · line by line · Aug 2026
DateAccountDescriptionFX amountRate appliedBasisKRW equivalent
USD
Aug 05Shinhan FX 501-***Export receipt 1+USD 1,000,000.001,428.00dealt rate+₩1,428,000,000
Aug 19Shinhan FX 501-***Export receipt 2+USD 800,000.001,412.50dealt rate+₩1,130,000,000
Aug 12Shinhan FX 501-***Raw materials−USD 900,000.001,419.00dealt rate−₩1,277,100,000
Aug 26Woori FX 1005-***Raw materials−USD 550,000.001,425.27MAR−₩783,900,000
USD Inflow subtotal+USD 1,800,000.001,421.11avg. rate+₩2,558,000,000
USD Outflow subtotal−USD 1,450,000.001,421.38avg. rate−₩2,061,000,000
EUR
Aug 14Hana FX 189-***European sales+EUR 420,000.001,535.71dealt rate+₩645,000,000
EUR Inflow subtotal+EUR 420,000.001,535.71avg. rate+₩645,000,000
JPY
Aug 21Shinhan FX 501-***Components−JPY 85,000,000930.59MAR−₩791,000,000
JPY Outflow subtotal−JPY 85,000,000930.59avg. rate−₩791,000,000
Rate basis: trades involving conversion use the dealt rate; transfers without conversion use that day's market average rate (MAR). JPY rates are per 100 yen.
Reconciliation by account · totals tie out
AccountCcyInflowsOutflowsNet
Shinhan FX 501-***USD+₩2,558,000,000−₩1,277,100,000+₩1,280,900,000
Woori FX 1005-***USD-−₩783,900,000−₩783,900,000
Hana FX 189-***EUR+₩645,000,000-+₩645,000,000
Shinhan FX 501-***JPY-−₩791,000,000−₩791,000,000
Total+₩3,203,000,000−₩2,852,000,000+₩351,000,000
Account totals tie out with the line-by-line currency detail above.
All client names, positions and P&L in this report are samples. Figures are measured history and do not guarantee future performance. Decisions and execution stay with the client. KFI-FX-2026-08-031 · 6 / 7
CODE THE LAW. MOVE THE MONEY.
SAMPLE
FX position diagnostic · monthly
As of Aug 31, 2026 · KFI-FX-2026-08-031
FX-RELATED P&L BREAKDOWN · AUG 2026 (THIS MONTH)
LineGainsLossesThis monthYTD 2026
Realized FX gains and losses · locked at settlement+₩62M−₩14M+₩48M+₩430M
Unrealized translation · period-end valuation+₩45M−₩19M+₩26M−₩80M
Forward valuation · short USD 800,000.00+₩19M-+₩19M+₩110M
Total FX-related P&L+₩93M+₩460M
Gains outweigh losses on every line this month. The −₩80M cumulative unrealized balance is what remains of the July won-rally markdown; the August rebound and +₩110M of forward gains offset most of it. Read the totals, not the lines. The page-3 backtest curve is a same-net-assets simulation; this table is measured accounting.
FINANCIAL VS. MANAGEMENT ACCOUNTING · SAME MONTH, DIFFERENT NUMBERS
Financial accounting · period-end MAR 1,421.16+₩93M
Management accounting · internal budget rate 1,450.00+₩41M
Gap between the two₩52M
The internal budget rate (1,450.00) sits 28.84 won above the period-end market rate, so the same trades book smaller in management accounting. This is why business units and the financial statements disagree, and a reason to review the budget-rate refresh cycle.
THIS MONTH IN REVIEW · AUG 2026
Aug 5Export receipt USD 1,000,000.00 converted at the dealt rate 1,428.00, which is 6.89 won above the August average buy rate of 1,421.11 (line detail, p6).
Aug 12Wednesday review breached the band. Sold USD 900,000.00 @1,420.00, redeployed to EUR and KRW (execution record, p4).
Aug 19Export receipt USD 800,000.00 converted @1,412.50.
Aug 26Wednesday review. Sold USD 1,100,000.00 @1,426.00, bought EUR (execution record, p4).
August resultFX-related P&L +₩93M · allocation policy gain +₩120M (p5)
OBSERVED THIS MONTH · ALLOCATIONS THAT WOULD HAVE DONE BETTER
Had the 19% EUR settlement floor been in place from Aug 1+₩15M
Had idle KRW been trimmed to 10%+₩11M
Total+₩26M for the month · +₩310M annualized
These are after-the-fact measurements, not market views. Both items are already reflected in the Sep 3 review proposal (p2). Whether and how to execute stays with you.
All client names, positions and P&L in this report are samples. Figures are backtested on measured history and do not guarantee future performance. Decisions and execution stay with the client. KFI-FX-2026-08-031 · 7 / 7