Russell to help manage IOOF's $10 billion portfolio

IOOF Holdings has appointed Russell Investments as its investment consultant to help manage its $10 billion multi manager portfolios within the funds management division.

Russell will work closely with IOOF’s recently restructured internal investment team, which is responsible for the group’s Multimix multi-manager portfolios and United Funds Management.

Russell will initially assist with the group’s asset allocation processes followed by a review of several asset classes.

IOOF Holdings’ chief investment officer, Steve Merlicek, said he would look to harness Russell’s suite of innovative strategies aimed at enhancing active returns and reducing trading costs for investors.

“We will also look to take advantage of Russell’s dynamic range of portfolio efficiency strategies such as emulation and Select Holdings,” Merlicek said.

“Russell’s strategic tilting capabilities and its strong actuarial practice are also areas which may be useful for the group going forward,” he said.

Russell’s investment consulting practice provides advice on topics related to the planning, structuring, managing and implementing of investment programs for large investors such as pension/super funds, charitable institutions, insurance companies and other financial intermediaries.

Greg Liddell, head of investment consulting for Russell Investments, said the new relationship further strengthened Russell’s position in the Australian market.

“In Australia and around the world sophisticated investors are seeking consultants who can not only provide tailored, long-term solutions to highly complex investment scenarios, but also guide them through the intricacies of effective implementation,” he said.