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 customized 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 organization:
Reduce operational burden
Improve portfolio risk/return profile
Lower transaction costs
Our suite of overlay services
Cash
equititization
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
We can reduce the magnitude of drawdowns in portfolio value from significant market declines. We offer 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.
Customized 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 our industry-leading FX platform and specialist FX traders.
Robust risk management
Detailed compliance protocols with a separated compliance review and agenda-only approach.
Implementation numbers
$68.4 B
Managed in overlay services globally
140
Number of overlay clients in 2024
35+ years
Experience in overlay management
12
Dedicated team members
13
Average years of industry experience
Source: Russell Investments. Data as of June 30, 2025, unless otherwise noted. Currency figures are in U.S. Dollar (USD). Past performance does not predict future returns.
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 specialization by market segment
Proprietary quantitative systems for managing futures tracking error to customizable benchmarks
Seamless integration of physical 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.
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Read the articleRussell 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 40 years of experience.
A leading overlay services manager1
Factor investing offering of the year2
Factor investing offering of the year3
Perfect scores: outperformer in multiple categories4
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.
Customized Portfolio Solutions
Specialist expertise and strategies to help your team gain greater portfolio control, limit costs, reduce risk, and enhance returns.
Implementation resources
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