TheFrank Russell Companyhas formed a new alliance to distribute its series of multi-manager fund through theAssociated Plannersdealer group amidst continuing speculation about the future of its distribution relationship with theANZbank.
The alliance is the second formed by Frank Russell with a major dealer group this year, after it announced in February that it had struck a deal to distribute its multi-manager funds through theProfessional Investment Services(PIS) adviser network.
The deal with Associated Planners will mean Russell will distribute three customised multi manager funds, to be called the Foundation Portfolio funds, through the dealer group’s Solar Wrap platform.
But the announcement is set to further heighten speculation about the future of Russell’s existing four-year distribution arrangement with ANZ.
The arrangement is due to expire next year, prompting speculation that it will not be renewed given ANZ’s recent formation of a funds management joint venture withING, which offers its own range of multi-manager funds, the Optimix funds.
Frank Russell senior executive of worldwide third-party funds distribution Len Brennan says the group would aim to maintain its relationship with ANZ.
“From our standpoint we would like the link to continue,” he says.
But ING Australia head of product management Jarrod Brown has confirmed toMoney Managementthat the relationship will be reviewed, with a final decision on its future to be made jointly between ING Australia and ANZ.
“The whole market understands that ANZ is a 49 per cent shareholder in the joint venture and therefore has a great profit incentive to support the Optimix funds. But things will be more clear in coming weeks…when we start getting into the strategic integration [of the products offered by ANZ and ING],” he says.
Associated Planners managing director Ray Miles says the alliance with Frank Russell would give its advisers more options in designing the investment portfolios of clients.
“The Foundation Portfolios offer investors a choice…which compliments our existing range of investment solutions,” he says.
