Russell's Client Base for Overlay Services More Than Doubled In 2005.TACOMA, Wash. -- The client base for Russell Investment Group's overlay services more than doubled in 2005, surging from $100 billion when the year began to $250 billion. Synthetic exposure across these clients now exceeds $14 billion. Russell's overlay services include policy implementation, portable alpha Portable Alpha The strategy of portfolio managers separating alpha from beta by investing in securities that differ from the market index from which their beta is derived. Alpha is the return achieved over and above the return that results from the correlation between the portfolio and other customized solutions, all of which aim to reduce tracking error to policy while improving investment performance. Russell's service attracted several additional clients last year, including the Oregon Investment Council, all seeking risk control and enhanced performance for their total plan assets through rebalatization, portable alpha, cash equitization, synthetic rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting , and/or currency overlays Currency Overlay The outsourcing of currency risk management to a specialist firm, known as the overlay manager. This is used in international investment portfolios to separate the management of currency risk from the asset allocation and security selection decisions of the . "Russell has been an innovator in customized total-fund overlays that combine multiple strategies in one efficient, powerful and highly integrated package," said Michael Thomas
The Oregon Investment Council's decision to hire Russell confirms more large pension funds are using flexible derivative overlays to effectively manage their funds. Among those, Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. , a longstanding client for Russell's policy implementation services, commented on the value of a flexible overlay and Russell's approach to this service. "We sought a combination of overlay services that would improve our fund's performance while simultaneously reducing exposure to risk," said Dave Ertel, manager of investments, Southern California Edison. "Russell's suite of derivative overlay services offers compelling benefits with the flexibility and adaptability that best match our particular needs and requirements." "The results of our policy implementation work have been impressive - on average, our clients have seen - at the plan level - nearly a quarter percentage point contributed to their return while reducing total fund tracking error," said Thomas. The overlay services team operates within Russell Implementation Services, a division at Russell dedicated to helping clients improve their net investment returns by providing efficient implementation tools to multi-manager portfolios. Transition management, commission management and agency currency execution are a few of the other growing implementation services offered. For three decades, Russell has been researching the discovery and implementation of techniques designed to minimize the cost of strategic portfolio changes by its clients. Russell's global implementation services team currently includes 105 specialists who handle implementation issues In the Business world, companies frequently set-up a connection between which they transfer data. When the connection is being set-up, it is referred to as implementation. When issues occur during this phase, they are known as implementation issues. for clients representing more than $4 trillion in assets. About Russell Russell Investment Group Russell Investment Group is an investment firm with global reach, providing investment products and services to individuals and institutions in 44 countries. A pioneer in multi-manager investing, and the creator of Russell Indexes, Russell manages more than US$200 billion in assets , a global leader in multi-manager investing, provides investment products and services in more than 39 countries. Russell manages more than $155 billion in assets for advisory clients as of December 31, 2005, and provides other financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to clients worldwide representing more than $2.3 trillion. In 2006, and for the fifth time since 1999, Russell is ranked among the Fortune Magazine 100 Best Companies to Work For in America. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Toronto, London, Paris, Sydney, Singapore, Auckland and Tokyo. Russell Investment Group is a registered trade name of Frank Russell Frank Russell may refer to the following people:
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