Russell has launched an asset allocation strategy that aims to identify unsustainable market conditions in 11 asset classes and 11 geographical locations.
The Russell Enhanced Asset Allocation (EAA) process seeks to identify significant unsustainable movements in the market for 114 asset class pair comparisons through its forecasting models that span 11 geographical regions and 11 asset classes.
“As the last two years have demonstrated, the markets can move in extremes and these extremes can represent real investment opportunities,” global chief investment officer Pete Gunning said.
Russell will provide EAA to institutional investors as a collection of data, advice and fiduciary services in the initial stages.
“Unlike other asset class timing approaches, Russell Enhanced Asset Allocation provides a disciplined, structured and high-conviction approach for investors to respond to markets that are at very likely unsustainable levels,” Gunning said.
Gunning said the service was previously offered to select clients but will now be available broadly to Russell’s client base.
Russell said it will work with clients to ensure that any adjustments or “tilts” resulting from EAA do not interfere with their other investment activities.
“Enhanced asset allocation will live within the context of strategic asset allocation, automatic rebalancing and risk budgeting,” Gunning said.
“Our clients should understand this suite of services as a sophisticated and innovative means toward adding increment returns that should never fundamentally alter their strategic asset allocation,” he said.
