Overview Responsible investing Fiduciary management Customised portfolio solutions Funds and strategies Overlay services Controlling investment exposures with flexible and capital-efficient overlay programs. The challenge Institutional investment portfolios often have components that do not work in harmony with each other - some are managed by in-house investment staff while others are outsourced to numerous specialty investment managers. Making a change to investment exposures or keeping them within a reasonable range of desired exposures can be a near insurmountable task. Oversight and implementation can be brought together however using an effective overlay programme. Why Russell Investments for overlay services Russell Investments has a global team of seasoned overlay specialists who will work alongside your team to understand your portfolio requirements and help engineer a solution aligned to your specific investment challenges. We can create an investment framework providing improved visibility into investment exposures, and the ability to efficiently control these exposures using our robust Overlay strategies. With Russell Investments' Overlay services, you can expect: By managing total fund liquidity with an equitisation overlay, you can expect increased returns by 10-15bps.¹ Systematic rebalancing with overlays can typically reduce tracking error by 70%.² Access to a global, multi-venue 24-hour trading desk for best execution and local execution expertise. Gain additional resources and implementation expertise through our global team of 18 specialists. Russell Investments’ Overlay Services include: CASH EQUITISATION Cash is necessary for liquidity purposes. Our solution converts cash exposures to equity and/or bond exposures using derivatives, adjusting for total cash holdings on a daily basis. Our turnkey management service adjusts exposures and handles all downstream aspects of managing those positions. DOWNSIDE PROTECTION Most institutional investors need to maintain exposure to risk assets over the long term in order to meet aggressive expected return targets. However, not all investors can weather the full downside risk of a major correction that could take years to recover from. Russell Investments offers risk management tools designed to reduce the frequency and/or magnitude of drawdowns in portfolio value resulting from significant market declines. Our portfolio managers can tailor solution parameters to align with each client’s specific needs. POLICY IMPLEMENTATION Many institutional portfolios are managed to a Strategic Asset Allocation (SAA) but, as time passes these exposures drift in relation to each other. A disciplined rebalancing plan helps to keep such risks under control. With daily oversight of portfolio positioning, our Policy Implementation service can manage exposures to asset classes in the SAA via overlay transactions effectively solving cash drag and rebalancing policy issues at the same time. DYNAMIC DE-RISKING Dynamic de-risking solutions are effective strategies employed with investors that manage surplus risk where the goal is to improve the size of the assets in relation to the liabilities. This includes pension plans managing assets relative to their long-term promise to beneficiaries. A common form of such a mandate is often referred to as a glide-path portfolio, as asset allocations glide down in risk level as this goal is achieved over time. An overlay strategy provides a cost-effective and timely implementation of the new target exposures and achieves the desired asset allocation when a market opportunity presents itself. A comprehensive investment solution Our global team of overlay specialists are experienced in 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 An experienced, well-resourced global team Source: Russell Investments, As of 31 December 2020. When operational realities limit flexibility in running your investment plan, let us help design an implementation framework that allows for more effective management of portfolio asset allocations, cash and currency exposures. Industry leading When you invest, it's good to know you're among the best. Russell Investments has been globally recognised for excellence in the investment industry. We have a proven track record in investment implementation, with scale, client satisfaction, and innovative solutions, and more than 35 years of experience. View our awards Explore more with these resources: Implementing an Overlay programme For questions, contact Maarten: Maarten Roeleveld / DIRECTOR, BUSINESS DEVELOPMENT, BENELUX +31 20 567 4316 Learn more about our customised portfolio solutions Transition management We help clients manage their risks and investment performance when restructuring their portfolios or asset classes. Trading and execution Delivering client-centric, flexible solutions while employing the latest advances in technology to find liquidity pools that reduce transaction costs and manage risk. Currency management Our programme can result in a cost effective solution for a core component of your trading and risk management initiatives. Transition solutions Trading and execution Currency solutions Ready to take the next step? We're here to help. Request a meeting Let us know what you'd like to discuss and we'll be happy to connect with you. Request a meeting Meet the team Explore how we can partner to help meet your institutional needs. Get acquainted Subscribe to the blog Bringing together market and investing ideas from across the firm. Visit blog Any opinion expressed, 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. All data as of 31 December 2020 unless otherwise noted. 1 Source: Russell Investments. For Illustrative purposes only. Any forecast, projection or target is indicative only and not guaranteed in any way. Impact from 31 December 1978 to 31 December 2020. Based on a typical U.S. multi-asset portfolio consisting of 2.5% total cash (1.5% U.S. equity, 2.0% International equity and 1.5% fund cash) vs. a pro-rated target of 40% Russell 3000, 20% MSCI ACWI ex-U.S., 40% Bloomberg U.S. Aggregate. 2 Risk reduction as measured by decrease in tracking error between the portfolio with and without the Overlay programme relative to the Strategic asset allocation. Source: Russell Investments. Based on a 10-year composite of Russell Investments’ policy implementation clients. The information on this website is only intended for use by professional clients, regulated financial advisers and intermediaries who are knowledgeable and experienced in the financial services market and in investment products of this nature. If you are a retail or individual investor then please leave this website immediately and consult your financial adviser. You should not use this website unless you understand its nature and the extent of your exposure to risk. You should also be satisfied that the website and investments are suitable for your client in light of their circumstances and financial position. The information contained on this website is for information purposes only and you should not take it as constituting an offer, solicitation, inducement, commitment or invitation to subscribe for or to purchase, sell or hold any interest in any of the investments mentioned herein. This website is not intended for distribution or use by anyone in any jurisdiction in which such distribution or use would be prohibited. Nothing on this website or in the materials referred to therein constitutes, or is intended to constitute, financial, tax, legal or other advice. The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested. Any past performance figures are not necessarily a guide to future performance. The website may contain forward-looking statements, which are based on a number of assumptions regarding present and future business strategies, which may or may not prove to be correct. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Issued by Russell Investments Limited. Company No. 02086230 and Russell Investments Implementation Services Limited Company No. 3049880. Registered in England and Wales with registered office at: Rex House, 10 Regent Street, London SW1Y 4PE. Telephone +44 (0)20 7024 6000. 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Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN. Issued by Russell Investments Ireland Limited. Company No. 213659. Registered in Ireland with registered office at: 78 Sir John Rogerson’s Quay, Dublin 2, Ireland. Authorised and regulated by the Central Bank of Ireland. Russell Investments Limited. Company No. 02086230. Registered in England and Wales with registered office at: Rex House, 10 Regent Street, London SW1Y 4PE. Telephone +44 (0)20 7024 6000. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN. KvK number 67296386 Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates, with a significant minority stake held by funds managed by Reverence Capital Partners. Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes. 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