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 us

Russell 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 programme 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

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Dedicated specialist team

A dedicated portfolio manager with low client-to-portfolio-manager ratio and access to asset class specialist traders

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Flexible approach

Extended capabilities deliver total exposure management with solutions adapted as your portfolio changes and grows

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Continuous coverage

24-hour multi-asset trading: Asset class specialists cover a network of developed and emerging markets

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FX expertise

Protect your portfolio from currency movements using industry-leading FX platform and specialist FX traders

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Customised solutions

Tailored global futures baskets and OTC expertise to better manage risk and seek improved returns

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Robust risk management

Detailed compliance protocols with separated compliance review and agency-only approach

£54.6 B

Managed in overlay services globally

140

Overlay accounts

40+ yrs

Experience in overlay management

13

Dedicated team members

12 yrs

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

RUSSELL RESEARCH

Insights and research from our key thought leaders

Any opinion expressed is that of Russell Investments, is not a statement of fact, is subject to change and does not constitute investment advice.

The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

PARTNER

WITH US

Get in touch with us through this form and we'll reach out to you.

 

Carolyn Tsalos

Director, Customised Portfolio Solutions, EMEA

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