Our investment approach
Put the world's leading investment managers to work for you.
Our approach brings the world’s leading managers and strategies together—in a diversified, adaptive and efficient portfolio—aimed at achieving investors' goals.
Leading investment managers
The search for leading managers starts with, well, nearly all of them.
We take a global, "best-of-breed" approach to manager research, with researchers strategically placed around the world, searching for future outperformers. Our process, refined over almost five decades, is rigorous, ongoing, and has ultimately been effective.
Our 'hire' rated managers outperform their benchmark by an average of 1.62%.
These results are measured over rolling 5-year periods from the start of the millennium to the end of 2019.
On average, 79% of our 'hire' rated managers beat their benchmark.
As of December 31, 2019 unless otherwise stated.
Past performance is no guarantee of future results. Hire ranked managers' performance does not necessarily reflect the actual performanceof any Russell Investments' product.
* Since 2000, an average of 78.86% of our 'hire' ranked products have outperformed their benchmark over rolling 5 year periods. With an average performance of 1.62% above benchmark. Source: Internal Russell Investments analytics dated from January 1, 2000 through to December 31, 2019.
SOURCE: This page contains data as provided by internal Russell Investments applications. These applications are populated with data collected from individual managers by third party data collectors. The data is not thoroughly verified by Russell Investments and although deemed reliable, its accuracy is not guaranteed by Russell Investments or its affiliates. Most data is gross of advisory fees, but net of fee data is utilized where gross of fee data is not available. Note: In some cases money managers do not provide data on their products, therefore a reader should be aware that the representations may be misleading; performance of hire lists may be higher or lower than represented. Hire ranked does not imply that such products have been placed in any of our funds or products.
METHODOLOGY: Quarterly performance data for hire ranked products is sourced for all approved coverage areas researched by Russell Investments. Each product in our hire lists is compared to the relevant Russell Investments’ assigned benchmark Index to generate a quarterly geometric excess return. Product level quarterly excess returns are compounded to calculate rolling 5 year excess returns. Hit rate calculations determine the percentage of hire rank products that have a positive excess return over each 5 year period. The percentage hit rate in all rolling periods is averaged to generate an average hit rate across all periods. Average excess return includes all products that have 5 year hit rates, positive or negative. For each 5 year rolling period, average excess return is calculated. The results for all 5 year rolling periods are average to generate an average excess return for all periods.
REPRESENTATION: No client of Russell Investments has been able to achieve the represented performance due to the fact that the hire lists and universes are comprehensive composites that cannot be invested in directly. The hire lists and universes in Russell Investments’ research database that are used in this material (presentation) cannot be purchased or held by any client. These manager products are available for our consulting clients and internal portfolio managers to use in the construction of portfolios for our fund and separate account clients. Past performance is not indicative of future results.
TIMING: Data is based on performance of hire ranks from 2000Q1 to 2018Q4. Manager products are included and excluded as our product ranks change over time; not all products are continually hire ranked over these indicated time periods. The information presented is for illustrative purposes only.
Aligned to investor goals
Our globally consistent approach ensures we remain focused on helping investors achieve their goals.
Every investor is unique. Whether it's a tailored solution to ensure your plan is fully funded, or the steady income to fund a great life after work, our approach ensures we remain focused on helping investors achieve their goals.
Starts with the investor
What balance of assets offers the highest likelihood of reaching the goals?
What is the best way to access those assets?
What is the most efficient way to implement?
How should we optimize over time?
The future is uncertain, we focus on making the most of it.
Our approach to asset allocation and diversification is based on one simple insight. No one asset class or style always outperforms. No single manager is great at everything. History repeats this story time and time again.
This insight informs our diversified approach. Our expertise extends well beyond traditional stocks and bonds, with extensive expertise in non-traditional asset classes including infrastructure and private equity—over 170 asset categories in total.
We draw on this expertise to design an asset allocation, stress-testing across 5,000+ possible scenarios to help ensure it offers the highest likelihood of reaching your goals.
major asset classes
Sub asset classes
Statistics as of December 31, 2019
When uncertainty strikes, we're ready.
A portfolio that can’t respond rapidly to new information is exposed to additional risk.
We have the ability to respond quickly and insightfully. With professionals in every major timezone, we monitor investment markets day and night. When it’s time to act, our internal trading desk can implement trades around the clock—potentially protecting portfolios before local operations start their day.
Monitoring investment markets day and night.
A robust process to help ensure decisions are sound.
The ability to efficiently implement trades around the clock, through our internal trading desk.
Efficient execution, without sacrificing insight.
When it comes to execution, our focus is firmly on net of fee performance. If there is a way to access additional net returns consistently, we will pursue. If there is a way to consistently reduce costs, with a net benefit, we will work just as hard for those basis points.
In a typical diversified fund, a sub-manager may sell the very same security another is buying—a material cost to the fund, with no benefit. Our unique Enhanced Portfolio Implementation approach eliminates this wastage.
ELIMINATING REDUNDANT TRADES
Sell tradesBuy trades
Our tax-managed funds seek to actively minimize tax-loss. Take the Tax-Managed U.S. Large Cap Fund. It gave 88% less of its return to taxes, relative to tax-unaware equivalents, over the last 5 years2.
Our Tax-Managed U.S. Large Cap Fund
Less return lost to taxes
2As measured by Morningstar U.S. Equity Mutual Fund Universes and Morningstar Tax-Cost Ratio. As of 12/31/2019. Morningstar’s Tax-Cost Ratio assumes the highest possible applicable federal tax rates, including the 3.8% net investment income tax. Many investors are not subject to the highest rates. Additional state and local taxes may apply. Note that tax drag calculations only apply to taxable accounts. Click here for standardized fund performance.