How do I get the precise exposures that may be needed to help my portfolio succeed?
Factors are simply specific, single attributes of investable securities, such as the security’s size, quality, or valuation. Understanding and actively managing these factors can both potentially drive returns and manage risk within a portfolio. For example, overweighting a portfolio toward the value factor is expected to have specific implications when value comes in and out of favor in the markets.
With our experience in manager research and our heritage in building factor indexes, we understand what can drive the performance of factors and when a specific factor exposure may be worth paying for. We have a keen eye for when it might make sense to use active management to gain exposure to factors, and when it might be better to access and manage these exposures through transparent, quantitative, Russell Investments-built models.
- Our investment professionals were key in defining style factors, including pioneering Growth and Value in the 1980s, and, more recently, in defining Defensive and Dynamic style factors in the 21st century.
- When it comes to picking managers, we are consistently ranked as a top manager research firm in the world.*
*For a fourth time in a row, Russell Investments was ranked #1 for having the best manager due diligence practices by consultant relations professionals in a 2014 FundFire survey of nearly 100 respondents.
There is no guarantee that Russell Investments' exposure views will be correct. If incorrect, the exposure(s) may more negatively impact a portfolio than had they not been implemented.