- Russell multi-manager funds show strong performance despite challenging 12 months
In recognition of Russell Investments’ “strong competitive advantages in people, process and product design” research house Lonsec has awarded Russell’s multi-manager funds a ‘Highly Recommended’ rating.
In its October report, Lonsec reviewed 13 of Russell’s multi-manager funds across both multi-asset and single-asset classes. Lonsec cited the “continued level of sustained stability over the last 24 months” of the Australian investment team and Russell’s “strong performance”, which Lonsec believes “is a reflection of the skill set and resources within Russell working effectively”.
Patricia Curtin, managing director of Retail for Russell, said the ‘Highly Recommended’ rating was recognition of Russell’s continued performance despite tough conditions over the last 12 months.
“Russell’s performance over the last year is a testament to the strength of our stable investment team and our internal capabilities. These strengths mean we are well positioned to capture opportunities for investors now and into the future,” Ms Curtin said. During the past year Russell’s Investment team have added three specialists to its team including Samantha Steele as a senior research analyst, Matt Beardlsey as the Portfolio Manager for the International Shares Fund, and promoted of Scott Bennett to Australian Portfolio Manager.
The report states that “Over all periods assessed, the Russell Balanced Fund has produced absolute returns above the Lonsec Fund Sector Average and benchmark.”
Lonsec said Russell’s strategic asset allocation process was “a prudent approach; that is, ‘get the traditional asset classes right first, and then consider the inclusion of ‘alternatives’.”
Lonsec was also “pleased to see Russell’s recent increased allocation to alternative assets…and the continued research being undertaken to broaden out the alternatives exposure within the funds.”
“Russell has significantly boosted the alternatives team both in Australia and globally this year and we are pleased to meet Lonsec’s approval. We have added new capabilities in alternatives research and strategy which we feel are key strengths of the Russell multi-manager funds,” Ms Curtin said.
Research capabilities – a cut above
Lonsec also mentioned manager research, saying “the breadth and depth of information collected and assessed in its manager research process is a key competitive advantage over peers.”
“We are pleased Russell’s research process has helped us earn this ‘Highly Recommended’ rating. This research capability is present throughout multiple aspects of the Russell business.”
“Part of Russell’s competitive advantage is our on the ground approach to research. We take exhaustive efforts to understand our managers and we’re able to do this as a result of our 30 years experience in multi-managing, global expertise and highly experienced researchers,” Ms Curtin added.