Overlay

Parametric's Overlay solutions form a comprehensive portfolio management platform that enables institutional investors to optimize their portfolios and remain aligned with strategic policy objectives.

The Parametric difference

Our overlay solutions use diligent execution and creativity to help solve client challenges.

$147Bn+

Overlay AUM

30+

Years of overlay experience

Dedicated investment professionals

As of 3/31/2025

Potential benefits of overlay

Improve returns

Our cash overlay, rebalancing and execution options tailored to your goals and designed to minimize transaction costs and increase portfolio returns.

Increase portfolio flexibility

We customize implementation programs that may enhance liquidity and address persistent or episodic risks without disruption.

Enhance risk management

We give strategic advice on exposure management and hedging solutions with a suite of tools to help address and manage specific portfolio risks.

Overlay solutions at Parametric

Efficiency solutions

Our core overlay solutions are focused on cash equitization, portfolio rebalancing and transition overlay

Exposure solutions

Our advanced overlay solutions include portfolio completion, portfolio alpha, LDI and hedging

Cross-asset portfolio solutions

We built a full beta management toolkit and investment team focused on outsourced implementation and exposure management

Access to dynamic, wide-ranging instruments:

Futures

Options

Bilateral OTC swaps

ETFs

Equities

Fixed Income

How it works

number 1

Customized solutions

We take the time to understand each institution’s objectives and policy challenges, then design a custom overlay solution to address these challenges and establish the appropriate program parameters. Our team of derivative investment experts have access to dynamic, wide-ranging instruments including futures, options, swaps, ETFs, equities and fixed income.

number 2

Analytics

We use proprietary technology to validate portfolio data and generate custom analytics. Our overlay team evaluates and confirms these analytics and makes the necessary adjustments after approval and verification from the portfolio management team.

number 3

Detailed reporting

We generate comprehensive program reporting published on a secure client portal, providing institutional investors with increased oversight and governance. Comprehensive performance metrics measure returns by asset class and overlay component.

Why clients continue to choose Parametric: