The Problem

Inflexible Portfolio

For investors, every extra basis point matters. Further, achieving additional return without significantly impacting portfolio risk is the investors’ “holy grail.” Still, many investors find it difficult to optimize portfolio return without either changing existing asset allocation amounts or disrupting existing manager relationships.

Our Solution

Overlay

Investing in a derivatives-based strategy provides the opportunity for additional return with minimal cash outlay, if implemented via a separately managed account. For the institutional investor, notional funding provides embedded off-balance sheet leverage.