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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
