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RUSSELL INVESTMENTS
-6%
YTD 5/31/2016
RIIFL Multi-Asset Core Plus Fund
RITC Multi-Asset Core Fund
Multi-Asset Core Plus Composite Index***
Multi-Asset Core Composite Index**
1 year
3 years
Since Inception*
-4%
-2%
0%
2%
4%
6%
8%
3.01%
2.64%
4.02%
2.38%
6.45%
4.87%
6.00%
5.05%
7.80%
6.48%
6.86%
5.90%
-1.94%
-4.28%
-2.05%
-4.18%
Creating the structure is just the
start. Each of these exposures
ought to be managed dynamically
(we’ll return to that in a moment)
and new exposures ought to be
added over time. This type of broad
diversification means that when one
slice of the portfolio is dragging – as
commodities did in the recent past
– the exposure is not too large, and
there are other parts of the portfolio
that can carry you through.
CONSTRUCT: GETTING THE BEST
OF MANAGER RESEARCH
Having set the overall strategy, the
portfolio needs to be built. As part of
this “construct” phase, we look for
the best available active management
opportunities. Once again, to take
advantage of the full breadth of
what’s available, it pays to take the
multi-asset approach.
Consider the example of the money
manager we hired following a
period of performance, which saw it
underperform its market benchmark
by 80%! That sort of concentrated
risk and extreme volatility can be too
much to bear if you’re looking at that
line item in isolation, or even if you’re
looking at the slice of the portfolio it
comprises (this was a global equity
By approaching
portfolio construction
and risk management
with a total portfolio
view, it is possible to
gain better alignment
between the portfolio
and the end goals
being pursued:
Figure 1: Russell Investments Multi-Asset Fund performance
(as of May 31, 2016)
The RITC Multi-Asset Core Fund is a fund of the Russell Investments Trust Company Commingled Employee Benefit Funds Trust; it is not a
mutual fund.
The RIIFL Multi-Asset Core Plus Fund is a fund of the Russell Investments Institutional Funds, LLC; it is a private placement. This is not a mutual
fund.
*Inception for RITC Multi-Asset Core Fund is 4/1/2012. Inception for RIIFL Multi-Asset Core Plus Fund is 2/28/2013.
**The Russell Investments Multi-Asset Composite Benchmark consists of 75% Russell World Cap Index 50%Hedged, 5.0% Bloomberg
Commodities Index, 5.0% FTSE EPRA/NAREIT Developed Real Estate Index(Net), 5% S&P Global Infrastructure Index, 7% Barclays US
Aggregate Bond Index and 3% Barclays US 1-3 Month Treasury Bill Index.
***The Russell Investments Multi-Asset Core Plus Fund Composite Benchmark consists of: 75% Russell Global Index 50%Hedged, 4%
Bloomberg Commodity Index Total Return (USD), 4% FTSE EPRA/NAREIT Developed Real Estate Index (Net), 4% S&P Global Infrastructure
Index Net (USD), 5% BofAML Global High Yield 2% Constrained Index TR USDH, 5% JP Morgan Emerging Market Bond Index Global (USD)
and 3% Barclays U.S. 1-3 Month Treasury Bill Index.
Performance shown is gross of fees. Fees will reduce the overall performance of the funds. Indexes are unmanaged and cannot be invested in
directly. Past performance is not indicative of future results.