Overlay Services
Control cash, currency, or asset class exposures using systematic risk overlay strategies to reduce daily operational burdens and streamline access to market opportunities.
Partner with usRussell Investments' seasoned specialists provide you with the expertise and resources to design and implement a customised investment framework to improve the visibility and control of the underlying exposures in your portfolio.
Our comprehensive overlay program brings the resources and experience to help your organisation:
Reduce the operational burden
Improve portfolio risk/return profile
Lower transaction costs
Our suite of overlay services
Cash
equitisation
Maintain your liquidity and desired market exposure by using derivative overlay strategies to access equity and/or bond exposures. When cash levels change our turnkey management service adjusts those exposures and handles all downstream aspects of managing those positions.
Policy implementation
A disciplined rebalancing plan helps to manage the drift in exposures from your Strategic Asset Allocation (SAA) over time. With daily oversight of portfolio positioning, our team manages exposures to asset classes via overlay transactions effectively solving cash drag and rebalancing policy issues simultaneously.
LDI and dynamic de-risking
As funded situation improves risk tolerance often reduces. An overlay provides a cost-effective and timely implementation of the new target exposures and achieves the desired asset allocation when market opportunity arises. A common form of such a mandate is an LDI glide path which, systematically implements the asset allocation and hedge ratio changes quickly as targets are met.
Downside risk management
Reduce the magnitude of drawdowns in portfolio value from significant market declines. Russell Investments offers risk management tools to support institutional investors in managing and maintaining their exposure to risk over the long term without bearing the full downside risk of major market corrections.
Why choose Russell Investments as your overlay portfolio management partner?
Six important factors:
Dedicated specialist team
A dedicated portfolio manager with low client-to-portfolio-manager ratio and access to asset class specialist traders.
Continuous coverage
24-hour multi-asset trading: Asset class specialists cover a network of developed and emerging markets.
Customised solutions
Tailored global futures baskets and OTC expertise to better manage risk and seek improved returns.
Flexible approach
Extended capabilities deliver total exposure management with solutions adapted as your portfolio changes and grows.
FX expertise
Protect your portfolio from currency movements using industry-leading FX platform and specialist FX traders.
Robust risk management
Detailed compliance protocols with separated compliance review and agency-only approach.
$105.9 B
Managed in overlay services globally
140
Overlay accounts
40+ years
Experience in overlay management
13
Dedicated team members
12 years
Average industry experience
Source: Russell Investments. Data as of 31 December 2023 unless otherwise noted.
Tech-enabled client solutions
Our global team of overlay specialists is experienced at tackling the more complex and challenging investment problems facing institutional investors using our proprietary technology and systems.
Proprietary system for aggregating account-level data to enable overlay management
24-hour agency-only global trading desk with specialisation by market segment
Proprietary quantitative systems for managing futures tracking error to customisable benchmarks
Seamless integration of physical and overlay trading via trade order management system for more complex solutions
Our experts work hard to solve the complex issues our clients encounter.
Our collection of research shows our dedication to solving complex investment problems.
Private Markets Playbook: Positioning for a New Reality
How to spot opportunities and gain exposure to private investments without taking on too much risk.
Read the articleGlobal Market Outlook 2025 Midyear
Shaken, Not Stirred
From tariff resets to currency shifts, the landscape is evolving fast. We break down where resilience is showing up, where risks remain and how we’re positioning for the second half of 2025.
Read the forecastOutsourced CIO
The Right OCIO Can Cure Insomnia in Restless Markets
Even in normal times, managing an investment program is a challenging job. But when you add on tariffs and trade wars, it's bound to lead to some sleepless nights. Learn how an OCIO firm can provide relief.
Read the articleCustomised Portfolio Solutions
Specialist expertise and strategies to help your team gain greater portfolio control, limit costs, reduce risk, and enhance returns.
Partner with us
Get in touch with us through this form, and we'll reach out to you.