Russell Investments launches Sustainable Managed Portfolios

From

Neil Rogan

Global asset manager Russell Investments has announced the launch of the Russell Investments Sustainable Managed Portfolios, providing Australian investors with exposure to predominantly sustainable managers and strategies that seek to have positive sustainable outcomes within a dynamic, transparent managed portfolio structure.

Developed in response to investor demand, the Sustainable Managed Portfolios extend Russell Investments’ existing range of dynamically managed multi-asset portfolios, and offer financial advisers new opportunities to align their clients’ investments with their ESG values.

Yesterday’s announcement builds on Russell Investments’ commitment to offering investors broad responsible investing solutions. Russell Investments has been a signatory to the United Nations Principles for Responsible Investment since 2009, and the firm manages more than A$57 billion in ESG assets globally[1].

Neil Rogan, Russell Investments Head of Adviser and Intermediary Solutions in Australia said: “In the past it was rare for advisers’ clients to define the type of investment factors they want to see in their portfolio. However, today advisers are experiencing an increasing demand from clients to be invested in ways which align with their values, particularly from those clients who are environmentally conscious.

After another few years of devastating bushfires and floods, many Australians are eager to leave a positive impact on the environment in any way they can, and this includes how and where they invest.”

Russell Investments recognises that investors with sustainable investing values require both transparency and flexibility. To respond to this need, the Sustainable Managed Portfolios include a component of directly held Australian shares, selected according to ESG objectives and exclusions. This provides the ability to see, understand and potentially adapt these holdings through the managed account structure.

The Sustainable Managed Portfolios also invest with active managers that have been identified by Russell Investments’ manager research team as demonstrating high standards of ESG integration in their investment process. By blending these components with proprietary ESG strategies and Exchange Traded Funds, the Sustainable Managed Portfolios employ a total portfolio approach. This helps ensure each portfolio is designed and managed to meet it’s investment objectives while achieving positive sustainable outcomes.

These outcomes are measured by reducing carbon emissions through lower carbon portfolio scores, and by reducing the ESG risk score of the portfolios.

“Russell Investments’ Sustainable Managed Portfolios are a significant development for financial advisers. Now, they can invest their clients in portfolios which leave a positive sustainable impact on the world, while harnessing the institutional-grade depth of research and manager access that Russell Investments makes possible for retail and wholesale investors,” Rogan said.

“By employing a multi-asset managed portfolio structure, we are able to satisfy a range of investor risk appetites, while saving advisers time by ensuring they no longer need to deliver a Statement or Record of Advice when changes are made to the portfolio.”

Russell Investments’ Sustainable Managed Portfolios are available in balanced and growth options, and they are accessible on multiple investment platforms.

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[1] As at December 2021

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