Currency Overlay

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Currency Overlay

The practice of using a firm specializing in currency hedging. This firm is called the overlay manager. The overlay manager takes a number of positions in various foreign currencies in order to reduce the client's foreign exchange risk.
References in periodicals archive ?
Your funds generate returns not only from the fixed income securities but also from the currency overlays that you use.
The group manages assets across multiple strategies, including Portable Alpha, US, International and Global Equity, Tax Managed Equity, Multi-Asset Class and Currency Overlays.
Russell's service attracted several additional clients last year, including the Oregon Investment Council, all seeking risk control and enhanced performance for their total plan assets through rebalatization, portable alpha, cash equitization, synthetic rebalancing, and/or currency overlays.