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May 31, 2011
Russell helps establish best practice for transition management performance transparency
- Provides Inalytics with global five-year data for transition track record database
- Performance data comparisons enable improved performance and higher returns for investors
SYDNEY, May 25, 2011 -Global financial services firm Russell Investments today announced it will provide transition management data to the Inalytics TIPS (Transition Implementation Performance Standards) database. This new arrangement will allow clients of Inalytics, such as superannuation companies, to review transitions carried out globally by Russell for the past five years, including summary information about transition performance across a wide range of asset classes.
Historically, Russell Investment Services has made data available to its clients through comprehensive reporting, but this is the first time it will be available to a wider range of investors. The new arrangement will enable clients to make comparisons on transition managers' history of transitions, to identify those managers that can provide service efficiencies which can be passed on in the form of higher returns.
"We have always argued for a transparent approach to transition management so clients can identify providers with consistently accurate pre-transition cost estimates versus actual costs," said Sally Corbett, manager, investment services, Australia. "This initiative will highlight to clients the importance of sophisticated risk management in delivering successful transitions."
Russell Investment Services (RIS) executes all implementation services such as transition management, interim portfolio management, currency hedging, agency FX and portfolio solutions (i.e. emulation) and policy implementation, to assist superannuation funds focused on achieving cost efficiencies within their funds to improve portfolio performance.
"Our analysis shows superannuation funds can gain 20-50 bps per annum simply by reducing inefficiencies in their portfolios through the appropriate implementation techniques. Allowing funds to evaluate providers based on their performance data translates to higher returns for the end investor," Ms Corbett said.
Amanda Field, managing director of Inalytics, Asia-Pacific, said, "We are very pleased that Russell, a leading transition management provider, has continued to demonstrate clear market leadership through its decision to support the database. Investors are increasingly demanding greater transparency for their transitions, and the Inalytics TIPS database will help them achieve this objective."
The agreement with Inalytics, follows Russell's commitment to consistent and transparent standards in transition management as seen by the introduction of the enhanced version of the T Standard in 2008. The T Standard is a metric, created by Russell and widely used across the transition management industry to help investors measure the performance of their portfolio during a transition. In 2010, Russell transitioned assets worth over $676bn, as well managed a global client base of $536bn in Fund Assets for overlay services.