Outsourced trading

Streamline your trading for greater control and cost reduction.

The challenge

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’ outsourced trading

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 outsourced trading

Execution quality

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.

Enhanced performance

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 many perspectives: headcount 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.

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

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

3.7 bps

Fixed income price improvement versus top 20 asset managers.²

9.0 bps

Equity price improvement versus Elkins/McSherry peer universe.³

6+ bps

FX price improvement versus FX transparency manager universe.⁴

A recognised leader

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

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.⁶

Ready to take the next step? We're here to help.

For questions, contact Yazid:

Yazid Ben
Salem
 
ASSOCIATE DIRECTOR
MIDDLE EAST

+971 4 359 0322

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Any opinion expressed, is not a statement of fact, is subject to change and does not constitute investment advice.

The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

Any past performance figures are not necessarily a guide to future performance.

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