Overlay management is typically used to achieve hedging and risk controls, such as currency hedging, without altering the core asset mix.

• A. Overlay management is typically used to achieve hedging and risk controls, such as currency hedging, without altering the core asset mix.
• B. Overlay management replaces underlying assets with futures.
• C. Overlay management focuses solely on equity selection.
• D. Overlay management increases portfolio turnover with no risk benefits.

Answer: (A)