Overlays can be used to balance the yin and yang of your portfolio in a numbers of different ways and this paper will share three strategies for doing so. The first strategy is using an overlay to implement de-risking, which is focused on risk management; the second strategy is using an overlay for currency management, which has elements of both risk management and return enhancement; and lastly, using an overlay to implement tactical positioning, which is focused on return enhancement.
Strategy Spotlight: Using overlays to balance the yin and yang of your portfolio
There are two elements of investment management that go hand in hand with yin and yang and those are risk management and return enhancement. Good investors realize you must have both of these elements represented in a portfolio, and if you have too much of one, relative to the other, your portfolio can become unbalanced.