Russell Investments has appointed Carne Group as third-party management company to 11 Russell umbrella funds, comprising $32.5 billion of AUM across 76 active sub-funds, which the firms say is the world’s largest outsourcing to date by AUM. The funds are domiciled in Ireland and distributed globally.
Carne will use its proprietary technology platform to manage the funds, something Russell cited as one of two determining factors in the decision. The platform, which already handles some $2tn of global assets, digitises operations across the fund lifecycle, improving speed and reducing operational risk.
“This is a strategic decision that will allow us to offer our clients existing and new products in a faster and more efficient way,” said Joe Linhares, Russell group head of EMEA. “Leveraging Carne’s technology infrastructure will also make us more transparent, which is critical in today’s world. Carne’s independent oversight and the manner in which it is delivered will enhance investor protection. Given the CBI’s strong reputation for fund regulation, it should be clear that our choice of Ireland as the hub for our European product range speaks to the same point.”
The multi-jurisdictional regulatory expertise and the global presence of Carne’s management companies was the second determining factor in the decision.
“Investment products are complex and cross-jurisdictional in nature,” added Linhares. “And in a fast-evolving and increasingly complex regulatory landscape this presents obvious challenges. Carne’s specialised knowledge over such a broad footprint will give us new options and agility in meeting those challenges. The relationship will help futureproof our thinking as we plan ahead. All of this is great news for our fund investors.”
“We are delighted that an institution of Russell Investments’ standing has recognised the role Carne can play as a strategic partner,” said John Donohoe, Carne Group chief executive. “Russell has ambitious product plans in areas such as ESG and alternative asset funds, which require multi-jurisdictional distribution. Our infrastructure will centralise a range of critical operations, and the resulting control will allow Russell to focus resources on their core skill of wealth generation, whilst reducing time to performance for their investors. That is going to benefit everyone.”
