Russell Investments has launched an expanded manager due diligence service called Manager Compliance & Operations Review (Manager CORE), to provide institutional investors a better understanding of asset manager risk.
According to Russell Investments, the Manager CORE process begins with an initial organizational assessment followed by an on-site visit. After completion of thorough due diligence on a money manager’s internal operational, compliance, business and risk controls, each manager is assigned an overall qualitative risk rating. The company then issues recommendations for necessary improvements, which are supplemented by ongoing monitoring and reporting.
Manager CORE can serve as a complement to traditional manager research, or as a standalone service, and will also offer options for customization depending on client need. Some of the risks reviewed as part of the service include regulatory compliance requirements; conflicts of interest; governance; management leadership and vendor oversight; systems and technology; and business continuity and recovery.
Dianna Zentner, director of global manager oversight and due diligence at Russell Investments, said: “Russell is uniquely positioned to provide clients with manager due diligence intelligence because of our global understanding of managers, investing, operations and compliance.
“Following review completion, clients are armed with actionable information that will enhance their investment decision-making and risk mitigation process, raise their confidence in manager selection and provide time and cost savings.”