Derivative Overlay definition
Derivative Overlay means any investment entered into by the Trustees which leverages the assets of the Scheme in order to reduce the Scheme’s exposure to changes in interest rates and inflation expectations.
Examples of Derivative Overlay in a sentence
Asset Allocation Targets Include: Fixed Income 19% Public Equities (Derivative Overlay of 16%) 27% Semi-Liquid Credit Strategies (Fixed Income Risk) 7% Semi-Liquid Equity Strategies (Equity Risk) 17% Private Equity 18% Private Real Assets (60% Equity, 40% Fixed Income Risk) 12% Granting Horizon All endowments are invested in this pool with the goal of generating perpetual grants.