Russell Investments is recruiting a head of UK sales and is considering the launch of diversified income and annuity replacement products in Britain following similar discussions in America.
Peter Hugh-Smith, the managing director for UK private client services at Russell, says the division will announce its head of UK sales in the coming weeks.
The American-based company is debating whether to provide a diversified asset income fund to meet demand for varied income streams at a time of record low interest rates. (article continues below)
The annuity replacement product would aim to reduce the risk of taking out an annuity at a particular moment and spreading the investment risk across a wider horizon.
Russell already sells UK Growth Assets, International Growth Assets, Real Assets and Defensive Assets funds in Britain. Total expense ratios are typically 1.62-1.87% for retail share classes.
Under Ucits IV, Hugh-Smith says Russell could use master-feeder structures to bring strategies onshore, such as the firm’s OpenWorld range and Emerging Markets Equity fund, which has outperformed the offshore emerging market universe over five years, according to Trustnet.
However, Hugh-Smith emphasises the importance of building strong relationships with fund buyers in an environment of fierce competition between similar multi-asset propositions.