The new managers within the fund are Wellington Management Company, Macro Currency Group (an investment group within Principal Global Investors) and Colchester Global Investors Limited. With these additions, the fund now features a total of seven money manager assignments.
Wellington Management Company was assigned 20% of the fund. In contrast to other assignments in the fund, Russell’s manager research shows Wellington offers a multi-strategy approach that primarily focuses on developed government bond and currency markets, emerging markets and modest long/short credit strategies. Wellington’s portfolio construction process, which relies on four independent teams and focuses on different risk drivers, also is expected to complement the existing managers by having a lower correlation to them through a more diverse set of strategies. Macro Currency Group, which was assigned 7.5% of the fund, has a fundamental thematic approach to forecasting changes in currency values. The group's investment philosophy is based on the belief that currency markets are driven by cross-border capital flows, and the firm believes the best way to gain from these flows is to focus on predicting major themes that drive them. This top-down global macro approach looks for trends that are unique and different in each market cycle.