Centralised Portfolio Management










What

A solution where the underlying managers within a multi-manager equity structure pass their stock selection insights to Russell Investments and we aggregate trades into one centralised portfolio. We can also adjust the stocks traded to suit individual requirements.

When

You believe a traditional multi-manager approach to be expensive. Centralised Portofolio Management (CPM) can reduce transaction, manager and custody costs by reducing stock turnover, and improve precision and control over the aggregate portfolio exposures by enabling you to adjust exposures at the stock level. CPM can also be helpful if you are unable to invest in a traditional multi-manager fund or if you have specific requirements which need stock-level adjustments, e.g. you want to apply Environmental, Social, Governance (ESG) preferences or want to manage tax.

Why

By eliminating opposite trades, amalgamating trade sizes and reducing the trading frequency, we reduce the trading costs whilst maintaining the value of the stock ideas. This methodology allows you to gain manager insights and implement their model portfolio ideas in an efficient and cost-effective manner. It also provides you with the flexibility to implement custom portfolio preferences and may also allow you to access stock insights from managers that may be unwilling to manage more assets directly.

Case study & Papers

Global share fund uses CPM to improve efficiency

When this asset manager wanted to improve efficiency in its geared international shares portfolio, it chose Russell Investments' CPM solution. As well as reducing turnover, commissions and other trading costs, the move has also delivered better performance, efficiency and control - while retaining the individual insights of seven managers (including stock and currency positions).

43%

less stock turnover since inception7

22bps

saved in trading fees since inception8

Additional alpha captured9

Read Paper

European institutional investor seeks ESG portfolio

A European institutional investor tasked Russell Investments with improving the returns from their global equity portfolio. The client had previously implemented their allocation via two global equity 'Responsible Investing' (RI) mandates to maintain good environmental, social and governance (ESG) practices. However, performance from both managers was disappointing. Russell provided a more efficient approach to implementing ESG consideration to maximise their return potential..

Outperformed its benchmark by over

1.1%

Cost effective execution from trading across mandates

Reduced alpha volatility with diversified manager styles

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CPM improves global shares efficiency after tax

A multi-billion dollar Australian multi-asset portfolio manager wanted to invest in a diversified global shares portfolio with a focus on investors' after-tax outcomes. While global shares form a significant proportion (20-40%) of a typical Australian superannuation fund's asset allocation, very few global shares providers managed their portfolios with a focus on after-tax outcomes from an Australian investor's perspective.

3.4%

p.a excess returns after-tax15

>50%

reduction in stock turnover16

Reduced alpha volatility with diversified manager styles17

Read Paper
Footnotes

Speak with a consultant

For a confidential discussion about your objectives, connect with a
Russell Investments specialist below.

Nicki Ashton

Nicki Ashton

HEAD OF STRATEGIC
PARTNERSHIPS

+61 2 9229 5521

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