Investment portfolios often contain components that do not work in concert with each other. That said, making changes to investment risks or keeping them within a reasonable range can be an almost insurmountable task. However, it is possible to combine monitoring and practice using an effective overlay program.

Why choose us for overlay services

RCE Banque has a global team of experienced overlay specialists at its disposal to work with you to fully understand your portfolio requirements and help design a solution that is tailored to your specific investment objectives. Our professionals will create an investment structure for you that provides improved transparency of investment risks and the ability to effectively control these risks using our reliable services.

What the overlay from RCE Banque gives to clients:

  • Increase in profitability by managing the overall liquidity of the portfolio
  • Reducing tracking errors through systematic rebalancing
  • Access to global 24/7 trading with multiple venues for the best execution
  • Gain additional resources and implementation experience with our global team

Overlay services from RCE Banque include:

Equalization of funds
Cash is needed to provide liquidity. Our solution converts monetary risks into stocks and / or bonds using derivative financial instruments. Correction of the total amount of funds is carried out on a daily basis. Our management team manages the risks and handles all subsequent aspects of managing these positions.
Policy implementation
Many portfolios are managed according to strategic asset allocation, but over time, risks begin to drift relative to each other. A disciplined rebalancing plan keeps these risks under control. With daily portfolio monitoring, our policy enforcement team can manage risk through superimposed transactions, effectively addressing cash reallocation issues.
Dynamic risk reduction
Dynamic risk mitigation solutions are effective strategies used by investors to manage excess risk. Their goal is to improve the size of assets over liabilities. This includes retirement plans that manage assets in accordance with their long-term promises to beneficiaries.
A common form of such an order is often referred to as a “rolling portfolio” because the level of risk in asset allocations decreases as this goal is achieved over time. An overlay strategy ensures that new target risks are realized in a cost-effective and timely manner and ensures the desired asset allocation when a market opportunity arises.
Beta conversion
The mix of asset classes (or beta) in SAA does not always coincide with the most fruitful excess return (or alpha) opportunities. Unwanted asset classes can be reduced and desired asset classes added, all using the overlay program.
Management of risks
Most investors need to maintain exposure to risky assets over the long term to achieve aggressive expected return targets. However, not everyone can withstand the full risk of worsening the situation as a result of a major correction that may take years to recover. RCE Banque offers risk management tools designed to reduce the frequency and / or magnitude of drawdowns in portfolio value as a result of a significant market decline. Our portfolio managers can tailor the solution parameters according to the specific needs of each client.

Our comprehensive investment solution

Our global team of overlay specialists has a wealth of experience in solving the complex investment challenges faced by investors using our proprietary technologies and systems:

Own account-level data aggregation system for overlay management.

24/7 global marketplace for segment-specific agencies only.

Proprietary quantitative analysis systems to manage futures tracking errors prior to custom tests.

Full integration of physical and overlay trading through the trade order management system for more complex solutions.