Frank Russell moves into retail
Frank Russell Company says there has been a strong shift to multi-manager funds by retail investors as they seek diversification in investment portfolios.
Frank Russell Australasia managing director Alan Schoenheimer says the reason for the move to multi-manager funds is due to the security within the funds which can avoid volatility when a single manager underperforms.
“Investors have gone from single stocks to single managers but not many advisers would recommend that idea. Rather by using multi-manager funds it offers diversity in investments without a lot of work,” Schoenheimer says.
“The underlying investments do not change and so there are no capital gains issues and the adviser can make change a positive thing.”
Schoenheimer says every fund manager will suffer from underperformance at some time and multi- manager funds avoid the problem of having to work out which funds to pick, and allows the adviser to concentrate on adding value for clients.
As a result of this shift in focus by investors, Russell will expand its presence in the local retail market by targeting financial planners and other intermediaries.
“It is true we are better known in the boardroom than the living room and becoming known to intermediaries is important,” Schoenheimer says.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
