Russell improves transparency through Inalytics deal

Russell Investments has improved on transparency around its transition management data to enable investors and super funds to compare their transition history with other managers, according to the financial services firm.

Russell Investments will provide transition management data to the Inalytics Transition Implementation Performance Standards database, which will enable Inalytics clients, such as superannuation companies, to review transitions carried out globally by Russell for the past five years. This will also enable investors to access summary information about transition performance across a wide range of asset classes.

Russell stated that its arrangement with Inalytics would enable clients to identify those managers that could provide service efficiencies that lead to 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 Russell Investments manager of investment services, Australia, Sally Corbett. “This initiative will highlight to clients the importance of sophisticated risk management in delivering successful transitions.”

Corbett said that Russell’s analysis showed that superannuation funds could gain 20-50 basis points per annum by simply reducing inefficiencies in their portfolios through appropriate implementation techniques.

“Allowing funds to evaluate providers based on their performance data translates to higher returns for the end investor,” she said.