Russell launches risk review service

Russell Investments is launching an expanded manager due diligence service combining traditional research and selection of investment managers with investment program management.

Russell’s Manager Compliance and Operations Review (Manager CORE) service is aimed at helping institutional clients understand and manage businesss, operational and compliance risks through a better understanding of their individual investment managers, according to Russell.

“Risk management needs to increasingly be a proactive part of the investment process so institutional investors can make fully informed decisions,” said Dianna Zentner, Russell’s director of global manager oversight and due diligence.

“Manager CORE will provide clients with the ability to access a transparent, in-depth look at the operational and compliance controls of their investment managers,” she said.

Russell said its knowledge of more than 60 regional regulatory agencies worldwide and emerging market insight would be crucial when considering accessing foreign domiciled managers.

Manager CORE involves an initial organisational assessment followed by an on-site visit. Following due diligence on a manager’s internal operational, compliance, business and risk controls, the manager is assigned an overall qualitative risk rating and Russell then recommends improvements.

Some of the risks reviewed include regulatory compliance requirements; conflicts of interest; governance; management leadership and vendor oversight; systems and technology; and business continuity and recovery, according to Russell.