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
$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
Our experts work hard to solve the complex issues our clients encounter.
Our collection of research shows our dedication to solving complex investment problems.
The Mechazilla Moment
Where do managers see opportunities today?
Successfully navigating markets in 2025 will demand more than relying on conventional wisdom about U.S. outperformance and global headwinds.
Review Global Market OutlookEye on private credit
Understanding the basics and beyond
With a robust supply of asset-based investments, the private credit market has grown to over $5T dollars and is anticipated to be worth nearly $8T by 2027, driven by structural shifts in the lending environment.
Start exploringOutsourced CIO
The Right OCIO Can Cure Insomnia in Restless Markets
Even in normal times, managing an investment program is a challenging job. But when you add on tariffs and trade wars, it's bound to lead to some sleepless nights. Learn how an OCIO firm can provide relief.
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.
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.
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.”
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.
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.
Customized Portfolio Solutions
Specialist expertise and strategies to help your team gain greater portfolio control, limit costs, reduce risk, and enhance returns.
Implementation resources
Managing Exposures Knowledge Exchange
How exposed are you? When it comes to risk management, we've got you covered.
Institutional Trading Calendar
Identify which days in the year have greater potential for elevated risk or reduced market liquidity.
Partner with us
Get in touch with us through this form, and we'll reach out to you.