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Currency Overlay

Parametric’s Currency Overlay helps investors mitigate unintended currency risks within a portfolio, thus affording investors a more direct return on the underlying assets.

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Two components make up international investing returns: asset return and currency return. With Currency Overlay, investors can better manage the level of currency risk within the international portion of the portfolio. 

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 determine the impact of currency exposure on the fund’s risk-return profile.

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We create a customized solution to meet each client’s unique currency exposure objectives. 

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Select instruments

We determine the appropriate currency instruments and portfolio-tracking methodology to manage the program.

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Once implementation is complete, we monitor currency exposure daily to determine the efficacy of the overlay and the need for position adjustments. 

Intended benefits of Currency Overlay

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Risk mitigation

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Hedging a portion of your portfolio’s currency exposure can mitigate unintended currency risks. 

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Currency Overlay seamlessly integrates within your entire overlay program.

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Currency Overlay can help you adjust your currency exposure to changing market dynamics. 

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