Russell Investments toughest on due diligence

News Release

Russell Investments toughest on due diligence

August 10 2009 – Russell Investments has been found to have the most thorough due diligence process in the consulting industry in a survey conducted by one the United States’ top firms for competitive intelligence research.

FundFire’s survey, of consultant relations specialists working for 50 asset managers, asked which consulting firms put managers through the most stringent due diligence review. Russell Investments received 19 votes, more than double the votes for the next closest firms.

FundFire reports Russell’s well-documented note-taking on managers dating back to the 1980s, its extensive analytical process used to evaluate the managers and internal policies designed to promote and retain quality research analysts is what helps make Russell’s due diligence the toughest.

Alister Van der Maas, senior manager of investor services for Russell Investments in New Zealand, says the team structure Russell operates globally means the same culture permeates the entire organisation.

FundFire says one differentiating factor that the survey identifies is Russell encourages a career path for due diligence analysts and rewards them appropriately, rather than considering research just as a stepping stone toward a higher paid consultancy role.

A second strength lies in Russell’s historical records, which allows its research analysts around the world access to information on portfolio managers and firms and to track managers should they change firms. Russell’s manager profiling tool - a database updated with managers’ holding every quarter – also means analysts are able to evaluate managers based on more than 150 factors, including economic sector exposure, valuation metrics and historical earning growth.

Mr Van der Maas says New Zealand clients had enjoyed the benefits of the international organisation’s research capabilities for many years. The fact that the strength of its due diligence is acknowledged by industry peers in the US is encouraging for all Russell’s teams.

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