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Joint Russell/Matrix funds pass targets

Five outcome-oriented portfolios developed by Russell Investments and Matrix Planning Solutions have exceeded target returns in their first six months, the two companies announced.

The joint investments strategy was announced in February this year after the funds launched in December 2012.

All five PartnerShip Funds are ahead of their annual objectives on a pro-rata basis, Russell stated. The PartnerShip Growth Fund posted a 10.8 per cent return for the year to August 2013, above its target objective of the Reserve Bank of Australia (RBA) cash rate plus 4.5 per cent.

The PartnerShip Balanced Fund posted a net return of 7.69 per cent, 3.72 per cent above its target of the RBA cash rate plus 3 per cent target (pro-rated), and the PartnerShip Debt Management Fund returned 7.67 per cent, 4.26 per cent above its target of 80 per cent of the Australian banks' average variable mortgage rate (pro-rated).

The partnership means retail investors can access Russell capabilities across capital markets, manager research, portfolio construction, indexes and portfolio implementation.

“Financial advisers are no longer content with the traditional benchmarking approach to investment returns and are instead seeking solutions that cater to the specific needs of investors,” Russell said in a statement.

Matrix Planning Solutions managing director, Rick di Cristoforo, said Matrix consulted heavily with its adviser network prior to the agreement, with feedback indicating they wanted more tailored client solutions.


“[The partnership] reflects the commitment from both Russell and Matrix Planning Solutions to provide advisers with the most effective tools to maximise the likelihood their clients realise their investment goals,” he said.

Russell Investments’ managing director for private client services, Siva Sivakumaran, said a collaborative approach to the partnership via a joint investment committee had contributed to the outperformance.

“The investment committee has been established to ensure open discussion between the two parties. It’s made up of representatives from both Russell and Matrix Planning Solutions who meet regularly to discuss market developments and quantitative research which is then made available to advisers,” Mr Sivakumaran said.