The company says advisers are facing a raft of changes and challenges, such as the need to achieve whole of market investment research while building and rebalancing client portfolios. It sees outsourcing investment to multi-managers as the solution and has created a fund range to give IFAs flexibility of asset allocation and help with portfolio construction.
The UK growth assets fund invests mainly in equities and will be managed initially by Investec, FOUR Capital and BlackRock. Each manager can pick stocks from any company or sector and is not limited to benchmark weights.
The international growth assets fund also invests mainly in equities and will be managed initially by Harris Associates, Marsico Capital Management, McKinley Capital Management, MFS Investments and Arrowstreet Capital.
The defensive assets fund will invest mainly in cash and bond funds, but could also include funds managed by Russell that have lower volatility, such as its absolute return equity fund.
The real assets fund will invest in asset classes that are directly or indirectly linked to physical assets such as commodities, property companies and infrastructure.
Russell Investments director Sarah Higgins says the role of Russell’s portfolio managers is to select managers and decide on asset allocation using the group’s global resources.
She says: “There may be an alternative style of management if market conditions change or a manager leaves. Our portfolio managers will change the mix as appropriate or they may decide to keep a manager or fund.”