Institutional investors have been seeking greater control over investment decisions, many deciding to internalise portions of their portfolio. This comes with several challenges, most notably the cost of establishing a global trading capability with scale and reach. However, executing with limited or local counterparties does not offer the same execution quality or risk management that investors require to manage exposures in a manner consistent with their fiduciary obligations.
Introducing Russell Investments’ trading & execution
We know how important it is to match solid execution with a sound investment strategy. Our seasoned trading team delivers client-centric, flexible solutions while employing the latest advances in technology to find liquidity pools that reduce transaction costs and manage risk.
Our global execution services can streamline your trading desk to act as an agent on your behalf, seamlessly extending your existing trading infrastructure.
Assets are traded using a pure agent approach, throughout global market hours with one of the broadest sets of trading counterparties.
This can allow you to achieve the best prices from natural liquidity with a team of traders that understand the nuances of portfolio trading and risk exposures.
You gain on-demand trading without the cost and operational burden of establishing this capability independently.
Benefits of trading & execution
A partnership with an outsourced execution platform, such as Russell Investments, improves execution quality through a greater number of dealer relationships, aggregation of order flow, increased crossing opportunities, and advanced technology sourcing liquidity from both buy-side and sell-side capabilities.
Improved execution quality directly influences performance while also removing the trade burden and counterparty management. This allows portfolio managers to focus solely on the core skills of alpha strategies, portfolio construction and client interaction.
Fixed cost reduction
Designing and developing an in-house trading desk is extremely expensive from head count and staffing to technology and settlements. Each of these, if not done correctly, can directly influence execution quality. These costs do not show up in the performance of the fund, but in the profitability of the firm itself. By outsourcing execution, you can reduce fixed trading expenses, increase firm profitability and allows you and your managers to be more competitive in the markets.
Flexible market capabilities
Outsourcing provides the ultimate flexibility and liquidity tools for portfolio construction. By having an execution partner whose global capabilities spans across all regions and asset classes adds flexibility to the investment process and improves the efficiency of implementation.
How do we deliver these benefits?
Our goal is to provide our clients with optimal execution solutions to achieve enhanced returns. We employ the latest advances in technology to find liquidity, reduce transaction costs and manage risk. Our knowledgeable, experienced trading team delivers client centric, flexible solutions. Together, we can address all your best execution, cost, technology, risk and regulatory needs.
The Russell Investments' advantage
Our unique structure with dual registration as both investment manager and broker enables you to leverage our extensive network of both buy and sell side trading.
Through our multi venue trading approach, Russell Investments reduces trading cost an average of 54% versus Peer universe. ¹
Access to exchanges, dealers, multilateral trading facilities, crossing networks, globally across a multi asset dealing desk.
Our executing desk is staffed 24 hours a day by asset class specialists with visibility to program level data to prioritise exposure risk and execution quality.
Russell Investments price improvement
Fixed income price improvement versus top 20 asset managers.²
Equity price improvement versus Elkins McSherry Peer Universe.³
FX price improvement versus FX transparency manager universe.⁴
MarketVoice | Article
Outsourcing the Traditional Trading Desk
A Modern Solution for Asset Managers
Read about the market trends and challenges asset managers face, which is creating a strong appetite for outsourcing the front-office trading desk. We also provide two examples where Russell Investments has tailored a bespoke solution to meet individual client needs.Read now
A recognised leader
Top Tier Broker
In 25 out of 29 most recent quarters, Russell Investments Implementation Services, LLC has been ranked as a top-tier broker in Pensions & Investments’ Tradewatch report based on the quality of its trade execution (most recently in P&I’s June 2019 issue)5
A Leading Institutional
For the ninth year in a row, Russell Investments was globally ranked among leading institutional outsourcing managers based on outsourced assets under management (AUM) from 65 firms in the June 2019 Pensions & Investments’ “Outsourcing Manager Survey.”
Learn more about our implementation solutions
Our program can result in a cost effective solution for a core component of your trading and risk management initiatives.
This is an essential tool for managing large pools of capital as derivative overlays help manage risk elements and improve performance.
We have helped clients manage their risks and investment performance when restructuring their portfolios or asset classes for over 25 years.
1 Externally verified by Elkins McSherry, our inhouse trading capability allows us to trade with lower market impact, resulting in a 47% price improvement relative to the industry average.
2 MarketAxess, data as at January 2018 through to December 2018 for USD investment grade corporates.
3 Figures as at 31 December 2018 *Asset transitioned based on AUM. ^Elkins McSherry data as of 31 December 2018. Highlight cost of global equity trading relative to full Elkins McSherry universe (both buy and sell side firms). Data is benchmarked against the "arrival price“.
4 MarketAxess, data as at January 2018 thru December 2018 for USD investment grade corporates.
5 Rankings are based on best-performing brokers as measured by the difference in cost/savings against the universe of Elkins/McSherry, a State Street company. The Elkins/McSherry universe is based on the top 50 brokers in each category by U.S. dollar volume. This is a quarterly ranking based on the previous four-quarters as of March 31, 2019.