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.

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Russell 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

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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.

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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.

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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.

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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

$71.5 B

Managed in overlay services globally

140

Number of overlay clients in 2024

40+ years

Experience in overlay management

12

Dedicated team members

12

Average years of industry experience

Source: Russell Investments. Data as of December 31, 2024 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 specialization by market segment.

  • Proprietary quantitative systems for managing futures tracking error to customizable benchmarks.

  • Seamless integration of physical and overlay trading via trade order management system for more complex solutions.

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

RECENT INSIGHTS
RECENT RESEARCH
Insights Research

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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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 40 years of experience.

 

Award bug from Pensions & Investments

In 2023, Russell Investments was ranked globally as one of the top 10 largest managers of factor-based strategies. This ranking is based on worldwide assets under management (AUM) from 58 firms (as of December 31, 2022) in the 2023 Pensions & Investments' (P&I) "Special Report: Money Managers." In 2024, P&I eliminated this question from their survey.

Award from P&I

For 20 consecutive years, Russell Investments has maintained its position among the leading U.S. institutional managers of overlay assets from 24 firms (as of December 31, 2023) in the 2024 Pensions & Investments’ “Special Report: Money Managers.”

THETRADE award for #1 category outperformer

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.

Pensions Expert: Pension and investment provider awards 2022

Russell Investments was named the "Currency Manager the Year" winner at Pensions Expert's 2022 Pension and Investment Provider Awards for performance, innovation, and service standards.

 

¹ Source: The TRADE, (2023, November). "The Outsourced Trading Handbook 2023: Outsourced Trading Survey" Issue 77 Supplement, p27.

² Based on business activities ending December 31, 2021. Recipient winners were invited to the publication's awards ceremony, in which we purchased an event table and received licensing usage rights of the logo/badge.

We paid the following publications a fee for licensing usage rights of the award logo/badge: Pensions & Investments (P&I), and THE TRADE.

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Transition Management Services offered by Russell Investments Implementation Services, LLC., member FINRA / SIPC.

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