Our investment approach
Put the world's leading investment managers to work for you.
Our approach brings the world’s leading managers and strategies together—in a diversified, adaptive and efficient portfolio—aimed at achieving investors' goals.
Leading investment managers
The search for leading managers starts with, well, nearly all of them.
We take a global, "best-of-breed" approach to manager research, with researchers strategically placed around the world, searching for future outperformers. Our process, refined over almost five decades, is rigorous, ongoing, and has ultimately been effective.
+1.62%*
Our 'hire' rated managers outperform their benchmark by an average of 1.62%.
Robust
These results are measured over rolling 5-year periods from the start of the millennium to the end of 2019.
79%*
On average, 79% of our 'hire' rated managers beat their benchmark.
As of December 31, 2019 unless otherwise stated.
Past performance is no guarantee of future results. Hire ranked managers' performance does not necessarily reflect the actual performance of any Russell Investments' product.
* Since 2000, an average of 78.86% of our 'hire' ranked products have outperformed their benchmark over rolling 5 year periods. With an average performance of 1.62% above benchmark. Source: Internal Russell Investments analytics dated from January 1, 2000 through to December 31, 2019.
Aligned to investor goals
Our globally consistent approach ensures we remain focused on helping investors achieve their goals.
Every investor is unique. Whether it's a tailored solution to ensure your plan is fully funded, or the steady income to fund a great life after work, our approach ensures we remain focused on helping investors achieve their goals.
Starts with the investor
What balance of assets offers the highest likelihood of reaching the goals?
What is the best way to access those assets?
What is the most efficient way to implement?
How should we optimize over time?
Intelligently diversified
The future is uncertain, we focus on making the most of it.
Our approach to asset allocation and diversification is based on one simple insight. No one asset class or style always outperforms. No single manager is great at everything. History repeats this story time and time again.
This insight informs our diversified approach. Our expertise extends well beyond traditional stocks and bonds, with extensive expertise in non-traditional asset classes including infrastructure and private equity—over 170 asset categories in total.
We draw on this expertise to design an asset allocation, stress-testing across 5,000+ possible scenarios to help ensure it offers the highest likelihood of reaching your goals.
major asset classes
Factors
Sectors
Sub asset classes
Investment styles
Manager products
Statistics as of December 31, 2019
Real-time adaptability
When uncertainty strikes, we're ready.
A portfolio that can’t respond rapidly to new information is exposed to additional risk.
We have the ability to respond quickly and insightfully. With professionals in every major timezone, we monitor investment markets day and night. When it’s time to act, our internal trading desk can implement trades around the clock—potentially protecting portfolios before local operations start their day.
Monitor
Monitoring investment markets day and night.
Analyze
A robust process to help ensure decisions are sound.
Act
The ability to efficiently implement trades around the clock, through our internal trading desk.
Efficient implementation
Efficient implementation, without sacrificing insight.
When it comes to implementation, our focus is firmly on net of fee performance. If there is a way to access additional net returns consistently, we will pursue. If there is a way to consistently reduce costs, with a net benefit, we will work just as hard for those basis points.
In a typical diversified fund, a sub-manager may sell the very same security another is buying—a material cost to the fund, with no benefit. Our unique Enhanced Portfolio Implementation approach eliminates this wastage.
OUR INVESTMENT APPROACH
Sell trades
Buy trades
Overlapping trades
0%
Redundant trades
Our tax-managed funds seek to actively minimize tax-loss. Take the Tax-Managed U.S. Large Cap Fund. It gave 88% less of its return to taxes, relative to tax-unaware equivalents, over the last 5 years2.
TAX LOSS
Our Tax-Managed U.S. Large Cap Fund
Tax-unaware equivalents
88%
Less return lost to taxes
2As measured by Morningstar U.S. Equity Mutual Fund Universes and Morningstar Tax-Cost Ratio. As of 12/30/2019. Morningstar’s Tax-Cost Ratio assumes the highest possible applicable federal tax rates, including the 3.8% net investment income tax. Many investors are not subject to the highest rates. Additional state and local taxes may apply. Note that tax drag calculations only apply to taxable accounts. Click here for standardized fund performance.
See our investment approach in action with our comprehensive range of funds and strategies.