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Russell risk review service aimed at institutional clients
Russell Investments is launching an expanded risk review service aimed at mid to large sized institutional investors, which it says will give them a deeper understanding of asset manager risk.
Russell’s Manager of Compliance and Operations Review Service, or Manager CORE, combines traditional research and manager selection with investment program management. It is aimed at helping institutional clients understand and manage business, 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 Russell’s director of global manager oversight and due diligence, Dianna Zentner.
“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.
“While recent market experience has provided many investors with heightened awareness of issues related to vendor oversight and the potential for conflicts of interest, we think one of the strengths of Manager CORE is its consideration of a wide range of business, operational and compliance risks,” Zentner said.
AUTHOR
Mike Taylor
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