Our investment approach
We use a three step approach to guide successful multi-asset portfolio management.
In the design phase, we identify a quantifiable investment target for an outcome-oriented portfolio. We then apply this within the context of our wider capital markets assumptions and forecasts. The result is the strategic asset allocation of the portfolio.
Asset allocation decisions are then brought to life in the construct phase. This stage is about faithfully implementing the portfolio design, while prudently using our full suite of tools and capabilities to make investor money work harder. We populate each part of the portfolio with what we think are the most potent sources of return available, including strategic positions that can pay off in the long run and active strategies from the best managers we can find.
The manage phase of our process is all about ongoing dynamic portfolio management. Markets change, managers change, and investor circumstances change. In order to provide the investors' required rate of return at a risk level they can commit to, we responsibly adapt our portfolios. At the core, portfolio managers need to do three things: know where the portfolio is, know where they want it to be, and know how to get there.
A more effective approach
Our philosophy is embedded within all our products.
Outcome orientated investing
Achieving the outcome a client desires is our definition of success. We invest in understanding our clients' objectives and designing thoughtful, practical investment solutions designed to meet the specific goals.
Best of breed components
We believe in a research-driven approach to investing, employing investment strategies chosen from a rich opportunity set of options. We devote significant resources, time and expertise to identifying the most powerful strategies, the best managers and the most efficient modes of implementation, wherever they reside. Where a required exposure cannot be sourced either at all, or in a cost effective way, we’ll create it.”
We are a research-driven organisation, delivering investment outcomes that are built upon our in-house capital markets insights. We use our research capabilities and extensive experience to help clients navigate the sometimes treacherous investment waters by providing solutions that are focused on reaching the long-term investment goals.
Effective risk management
The biggest risk investors' face is that they will not achieve their investment goals. Russell believes the best risk/return trade-offs can be obtained via a thorough understanding of the individual risks in a portfolio, and of how their characteristics can change when they are combined with other risks.
Dynamic portfolio management
Markets do not stand still and neither should your investment portfolio. The portfolio management team continuously assesses portfolio risk and adapts the fund's assets strategies when necessary to minimize risks and take advantage of market opportunities.
Any opinion expressed is that of Russell Investments, 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.