Managing exposures knowledge exchange

Your portfolio is exposed to risk. What do you do?

Where do you turn for strategies to mitigate risk and position portfolios for growth?


Manage exposures & mitigate risk

Despite vaccine rollouts and government stimulus, the way forward still holds many uncertainties and your portfolios may be exposed to significant risks.

We work with clients to tackle these issues every day - helping organisations achieve their investment objectives and providing tools to buffer portfolios from market challenges. Here, our specialists share their insights on current challenges as well as ideas on the approaches that could support portfolios for whatever lies ahead.

Transition management

Stuck between a rock and a hard place? How interim management can help.

Investment manager changes are a frequent occurrence for institutional investors and sometimes these changes are required on a moment's notice. There are times when the need arises to move assets from an existing investment manager to a new one before the ultimate new manager is selected. Investors can be faced with options that are not ideal and can end up leaving assets in limbo while a new manager is vetted and selected. We believe there is a better way to handle this situation – Interim transition management.

Explore Interim management

An explorer in an ice cave

Blog post

Transitioning fixed income assets in fractured markets

The increased risk that is associated with trading in thinner, more volatile markets has put a premium on risk management for fixed income portfolios in transition.

How to respond to market challenges

Research paper

A tale of two rebalances: Time-tested implementation best practices during market stress

What is the best practice in times of stress? Discover how the loss of $26 million, or-2.1%, was avoided.

Implementation best practices

Currency management

Capturing the reward side of currency exposure: Lessons from Japan

With interest rates in advanced economies probably stuck at zero for the foreseeable future, currencies can be a valuable source of return.

Read this insight

Cherry blossoms in Tokyo, Japan

Blog post

Don't ignore currency exposure when investing globally.

In this blog post, we explore how currency exposures can be managed to lower risk or enhance return.

Currency hedging to mitigate risk

Blog post

Cross currency basis – implications and opportunities

What factors underpin the cross-currency basis and the steps investors can take to maneuver potentially costly turbulence?

Learn about currency risk factors

Research paper

Currency proxy hedging – beyond correlations

Investors hedging currency exposures have many decisions to make including the option to use proxy hedging through an overlay program.

What makes a good proxy?

Overlay services

Real world overlay solutions in challenging times

Diligent risk control can allow for greater conviction in holding return-seeking assets without creating undue risk to the investment policy. This paper discusses three current themes demonstrating how an overlay program can be a critical tool for success.

Download the research paper

Real world overlay solutions in challenging times | Russell Investments

RESEARCH PAPER

Using overlays to balance the yin and yang of your portfolio: 3 strategies to optimise risk management and return enhancement

There are two elements of investment management that go hand in hand with yin and yang: risk management and return enhancement. Investors need to balance both elements to optimise their portfolio. Overlay programs can be used to balance the yin and yang of your portfolio in a few different ways and this paper will share three strategies for doing so.

Read about our 3 strategies

Blog post

Is an exposure to commodities what you need for portfolio diversification?

 

Treasuries (and entire fixed income allocations) may not provide the full diversification benefit they have in the past. Could commodities be an alternative?

 

 

 

Explore diversification options

Research paper

Liability-driven investing implementation: One size does not fit all

 

A one-size-fits all solution to liability hedging would be more complex and/or costly than a customised program. The approach is to provide a range of LDI solutions tailored to a client's current situation and to evolve as those needs progress.

 

 

Learn more about LDI in this paper

Trading and execution

Are investors paying too much for FX trading? Streamlining trading practices for price enhancement.

How switching to a single trading platform can lead to dramatic cost savings for pension plans and superannuation funds.

Learn more

Colorful waves of light energy being funneled through blue hoop on black background.

RESEARCH paper

Diversity firm inclusion in trading venues

MWVD owned firms may offer unique liquidity opportunities to enhance trading outcomes. How can this info be integrated into trading & execution strategies and tactics to meet clients' needs?

Let us explain

Blog post

The right stuff – How to find the right (outsourced) trading partner

If volatile markets taught us nothing else, they taught us how vital it is to get trading right. But how do you find the right partner for your needs?

Read 6 things to look for

Blog post

How has COVID-19 affected trading capabilities?

When the uncertainty of COVID-19 drove extreme volatility in the markets, how did this impact trading firms and how were they prepared?

Learn about the impacts

CUSTOMISED PORTFOLIO SOLUTIONS

Gain greater portfolio control, limit costs, reduce risk, and enhance returns

Investment teams are facing significant pressure – a squeeze on fee budgets, scrutiny of governance approaches, and challenging late-cycle market conditions – all driving an increased demand for nimble processes and a need to reach further globally to access new sources of return.

Combine your internal resources with our global capabilities. Designed to support in-house investment teams, we have a suite of services that can be customised in combination or delivered as discreet solutions to help you tackle your investment challenges.

Take a look into our capabilities and see how we can help you.

We'd love to connect.

We work tirelessly to help solve challenges our clients face.

If you have a comment, a question, or need help buffering your portfolios from risk, we invite you to contact us.

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