Implementation Solutions

Foreign exchange trading

More choice. More transparency. Consistently lower costs.

Russell Investments can help you capture more of the return benefit of your international allocation, while bringing greater transparency and operational efficiency to your fund.

How much do you lose per annum due to foreign exchange transactions?

Indirect trading of foreign exchange by your custodian can cost anywhere from 16 to 24 basis points. On an international portfolio of A$600 million at 35% turnover (i.e. A$210m) this equates to A$336k to A$504k.

International investing offers the potential for greater return, but foreign exchange (FX) trading introduces additional elements of cost, risk and complexity.

Acting on your behalf, we

  • Work with a network of bank counterparties to execute and settle your exchange transactions efficiently to reduce trading costs.
  • Assume operational risk for all operational tasks we perform.
  • Improve governance by providing transparency and control, with a comprehensive performance report showing when the trade was executed, the market rate at the time of trading, the trade volume by currency, and the trading cost.

You can integrate our foreign currency trading services into your international investment program, whether you handle currency needs internally or delegate them to your investment managers.

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