ING targets Russell in multi-sector
ING has broadened the distribution of its Optimix funds in what is sure to be seen as a challenge to the relationship between ING’s soon-to-be funds management partner, the ANZ Bank, and the Frank Russell Company.
The Optimix funds, a multi-manager series of investment, superannuation and allocated pension products, have until now been available only through ING’s largest dealer group, RetireInvest.
The new distribution arrangement for the funds will see the Optimix range promoted through all of ING’s dealer groups — including Lynx Financial Services, Partnership Planning and Aust Choice — as well as through other independent financial advisers.
News of the wider distribution plans follows an announcement that the name of the ING division responsible for managing the multi-manager funds, Australian Portfolio Managers, would be changed to Optimix Investment Management ahead of a significant marketing push.
But the new broader distribution plans will no doubt heighten speculation about the ANZ Bank’s relationship with Frank Russell, which has distributed its own multi-manager funds through the bank since 1998.
Speculation about the relationship has been rife ever since ANZ announced it would be setting up a funds management joint venture with ING, which would see it outsource its investment management activities and product development to ING.
Sources at ING have confirmed the ANZ’s association with Frank Russell will be reviewed as part of the joint venture agreement, particularly given ING’s own multi-manager capabilities through the Optimix series of funds.
Sources close to ANZ have previously toldMoney Managementthe relationship with Frank Russell has been placed under extreme pressure by the bank’s decision to team up with ING.
According to sources, the fate of the ANZ/Frank Russell deal will hinge on the size of the premium ANZ will have to pay to be released early from its contract with Frank Russell. It is believed the contract is not due to expire for another two years.
The Optimix funds, which are currently managing some $3.4 billion, spread their investments across 16 investment managers and seven asset classes.
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