Funds are received into an investment company from investors. The investment company approves a counterparty that wants to acquire asset exposure by means of a total return swap and the credit terms for the counterparty, including a derivatives position limit. The investment company the proposed total return swap including an identification of reference assets to which the counterparty wants to acquire exposure. The investment company approves the proposed swap based on availability of the reference assets and on transaction terms of the proposed total return swap. The investment company then purchases the reference assets with the funds and executes the swap with the counterparty. The purchasing of the reference assets and executing of the swap are performed in a manner that precludes the investment company from holding an unhedged position with respect to the reference assets.