Overlay strategy

Overlay strategy

A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the activities of money managers.

Overlay Strategy

The practice in which a money manager keeps track of all of an investor's accounts and the securities contained in them in order to prevent duplication, overexposure, or other unnecessary risks. An overlay strategy is believed to be more efficient when one has multiple brokerage accounts and helps one accomplish his/her overall investment goals, not just the ones of a particular account.
References in periodicals archive ?
The fund's adoption of the managed distribution plan and its increased distribution rate are attributable, in part, to the implementation of the fund's option overlay strategy that was adopted in 2014.
This workflow overlay strategy produces a secure, dedicated, high-performance work environment for better results, fewer bottlenecks and greatly reduced network lag.
The engineering firm, Hodges and Shutt (now Shutt, Moen and Associates) recommended a new overlay strategy for the runway.
First Trust Active Dividend Income Fund (the "Fund") (NYSE: FAV) announced that its Board of Trustees has approved certain modifications to the Fund's current investment strategy including the utilization of an option overlay strategy ("Option Strategy") alongside a buy and hold equity dividend value strategy.
The special distribution is attributable, in part, to the success of the fund's option overlay strategy that was implemented earlier this year.
s ("DIMA") global tactical asset allocation overlay strategy ("iGAP").
He is focusing on delivering fundamental analysis to his clients while also showing the benefits of using derivatives as an overlay strategy to enhance equity returns," said Brian Bier, who co-heads the trading effort at MRA with Drew Forman.
Its Web site will allow an advisor to import a portfolio, input parameters and information about the desired portfolio enhancement and have an options overlay strategy automatically generated and executed against the portfolio.
The fund also announced that it intends to implement an options overlay strategy that will include purchasing and selling puts and calls with the objective of generating additional income that may be distributed to shareholders.
The risk overlay strategy, provided in the third bucket, offers some probability that investors will be able to at least partially realize their wishes (such as travel or a second home), while at the same time helping to narrow the retirement gap.
Actions include level distribution plan and addition of options overlay strategy
In addition, the fund will employ a global tactical asset allocation overlay strategy to seek to generate additional return.