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Cash Overlay

Parametric’s Cash Overlay solution helps institutional investors mitigate performance drag by eliminating unwanted cash held for operational purposes, such as benefit payments or capital calls, or residual cash within manager portfolios.

Overlay Cash Intro Icon

Most institutions don’t prescribe a portion to cash in their target allocation but do carry some level of cash exposure, which can be a drag on performance. A Cash Overlay solution can help mitigate that drag.

Investing in an overlay program involves risk. All investments are subject to loss. Learn more.

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Why choose Parametric?


Overlay AUM


Years of overlay experience


Dedicated investment professionals

As of 3/31/2024

How it works

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We identify sources of residual cash and desired market exposures.

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We determine the appropriate overlay instruments to meet the investor’s overall objectives. 

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We monitor cash through automated custodial data feeds and execute trades so we can ensure any overlay exposures are in line with cash balances.

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We continually evaluate any potential overlay program changes to ensure they remain appropriate for a plan’s objectives.

Intended benefits of Cash Overlay

Minimized Drag icon

Minimized drag

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Cash Overlay helps eliminate the cash drag on operating and manager cash balances.

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Cash Overlay improves day-to-day liquidity and reduces transition costs. 

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Cash Overlay streamlines cash-flow management. 

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Liability-driven investing, Volatility, Overlay, Fixed income, Commodity, Options, Institutional investor, +4