Russell provides advisers with new dynamic funds management model for client's super needs
New superfund vehicle launched as Russell foreshadows need for more creative investment strategies
SYDNEY, 3 April, 2007 - Global investment and superannuation specialist, Russell Investment Group, has foreshadowed a major shift in the way advisers and investors need to invest as the hunt for above market returns - or alpha - becomes increasingly difficult. The comments come as Russell today launched its new superannuation vehicle - the Russell Private Retirement Series (RPRS) - providing Australian investors with direct access to some of the most cutting edge strategies in superannuation investment.
The RPRS is a superannuation vehicle that allows advisers to provide their clients with direct access to a wide range of investments from Russell's Diversified Portfolios and Sector Portfolios. Financial advisers and their clients can allocate funds among the thirteen different funds depending on their investment goals and risk appetite. The funds within the portfolio have been developed as a result of Russell's continued research into investment markets and provide access to what Russell believes is the worlds best fund managers.
Russell's Managing Director Retail Investor Services, Chris Corneil, said that advisers are increasingly looking beyond the traditional asset classes in order to deliver a more competitive return to their clients.
"The latest Russell Investment Manager Outlook found that 49 per cent of Australian investment managers believe the Australian sharemarket to be over-valued," he said. "Not surprisingly, financial advisers are increasingly investing in our opportunistic portfolios, global property and other alternative funds, in order to take advantage of changes in market cycles to produce alpha. Russell has developed a range of investment solutions for financial advisers, via the Russell Private Retirement Series, meaning our funds are based on the most innovative strategies in the market."
Mr Corneil said the Russell Private Retirement Series was designed to make full use of Russell's range of strategies and to provide ease of access for retail investors and their financial advisers.
"Russell - as a manager of managers - is ideally positioned to take the best in investment know-how and deliver this to the Australian financial advisers," he said. "The Russell Private Retirement Series offers institutional quality investments to individuals at wholesale prices," he said. "It is a dynamic product that is subjected to Russell's ongoing researching, monitoring and modifying processes and includes exposure to such leading edge investment strategies as the Russell Select Holdings strategy."
The Select Holdings concept was launched in Australia in April 2006 to further enhance the performance potential of Russell's flagship multi-manager Australian equities fund, the Russell Australian Shares Fund (RASF). Select Holdings is designed to create additional alpha (above benchmark returns) by leveraging the best stock selection ideas of the seven individual fund managers who manage money for RASF.
Mr Corneil said the market response to the RPRS had been so far very positive and that the changing face of investment meant that the Series was well placed to continue providing investors with the best possible returns in the face of a changing investment landscape. "With the rapid growth of new investment strategies, it is difficult for advisers and investors to stay in front of the game," he said. "With Russell's research capabilities and reach into the funds management industry, we can bring the best ideas and strategies directly to advisers. Russell's heritage is helping very large institutional investors. While we remain committed to developing pioneering strategies for this market, we are now also offering the established Russell investment approach to advisers and their clients."
Issued by Russell Investment Management Ltd ABN 53 068 338 974, AFS Licence 247185 ("RIM"). This document provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. The information has been compiled from sources considered to be reliable, but is not guaranteed. Past performance is a reliable indicator of future performance. RIM is the issuer of units in the Russell Funds. An invitation to apply for units in the Russell Funds is made by RIM in a Product Disclosure Statement ("PDS"). Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in any Russell Fund. The PDS can be obtained by visiting www.russell.com.au or by phoning (02) 9229 5111.