Overlay services

Reduce the
operational burden

Improve portfolio risk/return profile

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.

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.

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

Russell Investments has been globally recognized for excellence in the investment industry.

We have a proven track record in investment implementation, with scale, client satisfaction, innovative solutions and more than 35 years of experience.

¹A Leading Overlay Services Manager (Pensions & Investments): The 2005-2025 Pensions & Investments’ survey ranking of leading overlay services managers is based on total U.S. institutional, tax-exempt overlay strategy assets, using quantitative data reported as of December 31 of the previous calendar year. The survey includes a varied number of firms, differentiated by year: 2025 (21 firms), 2024 (24), 2023 (27), 2022(27), 2021 (29), 2020 (30), 2019 (36), 2018 (39), 2017 (41), 2016 (36), 2015 (43), 2014 (40), 2013 (39), 2012 (39), 2011 (46), 2010 (47), 2009 (53). 2008 (53), 2007 (48), 2006 (43), and 2005 (43). We paid this publication a fee for licensing usage and rights of the award logo/badge.

²Factor Investing Offering of the Year | (2024 Pensions Age Awards): Russell Investments was named the “Factor Investing Offering of the Year” winner at UK’s 2024 Pensions Age Awards. The judges praised Russell Investments’ deep comprehension of the significance of factor investing in the pension sector and their dedication to meeting client needs, thus establishing a high standard for the industry. Winners were announced February 21, 2024, based on business activities ending January 19, 2024. The awards are open to any UK pension scheme or provider that serves UK pension schemes. Recipients were selected by an independent panel of judges organized by Pensions Age, based on qualitative criteria such as innovation, client service, and contributions to the pension investment industry. This recognition should not be interpreted as a testimonial or endorsement by any client or investor, and it does not guarantee future performance or success. Short-listed recipients were invited to the following publications' awards ceremonies, in which we purchased an event table and received licensing usage rights of the award logo/badge.

³Factor Investing Offering of the Year | (2024 European Pensions Awards Factor Investing Offering of the Year): Russell Investments was named the “Factor Investing Offering of the Year” winner at the 2024 European Pensions Awards. The judges praised Russell Investments for its passion and expertise in the factor investing space, as well as its performance and innovation. Winners were announced July 4, 2024, based on business activities ending December 31, 2023. The awards are free to enter and open to any firm serving European pension funds. Winners were selected by a panel of independent judges, including industry experts and pension trustees. This recognition should not be interpreted as a testimonial or endorsement by any client or investor, and it does not guarantee future performance or success. Short-listed recipients were invited to the following publications' awards ceremonies, in which we purchased an event table and received licensing usage rights of the award logo/badge.

⁴Perfect scores: Outperformer in multiple categories; Perfect Scores: Outperformer in Multiple Categories; Perfect Score: Client Service and Relationship Management; Perfect Score: Onboarding; Perfect Score: Business Model and Other Factors; Perfect Score: Cost Versus Value For Money | (2023 The TRADE Outsourced Trading Survey): Russell Investments was ranked first in multiple categories in The TRADE’s inaugural “Outsourced Trading Survey” published November 2023 (out of 14 providers), receiving four perfect scores in: Client service and relationship management; Onboarding; Business model and other factors; and Cost versus value for money. The TRADE’s 2023 Outsourced Trading Survey, conducted in partnership with Ergo Consultancy, reflects client perceptions of outsourced trading providers based on a 7-point rating scale. The results are derived from subjective feedback and do not constitute a ranking or evaluation of provider performance or investment outcomes. Respondents included asset managers, hedge funds, and institutional investors from regions such as the North America, Europe, Asia, and Australia. Recognition in this survey is based solely on client sentiment and does not guarantee future performance or success. Clients were not compensated for participating in this survey. We paid this publication a fee for licensing usage and rights of the award logo/badge.