Trading and execution
Streamline your trading for greater control and cost reduction.
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’ trading and execution
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 trading and execution
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.
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 improvement, Russell Investments reduces equity trading cost on average of 61% versus Peer universe1.
Access to Exchanges, dealers, MTF’s, Crossing Networks, globally across a multi-asset dealing desk.
Our executing desk is staffed 24/6 by asset class specialists with visibility to programme level data to prioritise exposure risk and execution quality.
Russell Investments price improvement
Fixed Income Price improvement versus Top 20 Asset Managers2
Equity Price Improvement versus Elkins McSherry Peer Universe3
FX price improvement versus
FX price improvement versus FX transparency manager universe.⁴
When you invest, it's good to know you're among the best. Russell Investments has been globally recognised for excellence in the investment industry.
We have a proven track record in investment implementation, with scale, client satisfaction, and innovative solutions, and more than 35 years of experience.
In 37 out of 42 most recent quarters, 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 March 2022 issue).
Russell Investments was named the winner of the “Transition Management Firm of the Year” at the 2018 European Pensions Awards. Chosen among five finalists in this category, Pensions Age and European Pensions cited Russell Investments’ understanding of clients’ needs and the firm’s demonstrated performance and innovation.
Learn more about our customised portfolio solutions
We help clients to manage their risks and investment performance when restructuring their portfolios or asset classes.
This is an essential tool for managing large pools of capital as derivative overlays help manage risk elements and improve performance.
Our programme can result in a cost effective solution for a core component of your trading and risk management initiatives.
Ready to take the next step? We're here to help.
Any opinion expressed, is not a statement of fact, is subject to change and does not constitute investment advice.
The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies and/or current market conditions and are not an exact indicator. Results will vary depending on how the market performs.
Past performance does not predict future returns, any forecast, projection or target is indicative only and not guaranteed in any way.
1 This refers to equity only, from December 2015 to December 2020.
2 MarketAxess, data as at January 2020 through December 2020 for USD investment grade corporates.
3 Elkins McSherry, four quarters 31 December 2020.
4 FX Transparency & Russell Investments. Spot and forward trade costs. Costs from 2020. Past performance is not a guide to future performance. For illustrative purposes only.
5 Rankings are based on best-performing brokers as measured by the difference in cost/savings against the universe of Elkins/McSherry, a State Street company. The Elkins/McSherry universe is based on the top 50 brokers in each category by U.S. dollar volume. This is a quarterly ranking based on the previous four-quarters as of December 31, 2020.
6 Source: As of 31 March 2020.