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ICICI Bank has teamed up with the Russell Investment Group (“Russell”) to offer ICICI Bank Multi-Manager Portfolios (“the Portfolios”). It is a unique series of Global Investment Portfolios (equity & debt) designed to help investors build wealth in the long-term.
These Global Investment Portfolios are offered through Offshore Call Deposit Accounts (Singapore & Bahrain) whereby the customer is entitled to liberal taxation regime. The Investment is done on an omnibus basis to Russell Investment Group, thereby giving you the comfort that your investment details remain confidential with ICICI Bank Ltd.
The portfolios are sub-advised by Russell - a leading investment consultant in the world, advising investments worth USD 2.4 trillion. There is a choice of 4 different investment portfolios, each portfolio designed to suit a different risk profile and varying individual needs. These portfolios are registered in Dublin and regulated by the Irish authorities.
Client Profile Considerations
Understanding the client’s risk profile is mandatory before offering the ICICI Bank Multi Manager Portfolios to a client. As the Portfolios have varying exposure to equities, it is important that the aggressive portfolios are offered to investors having higher risk-taking capacity, while conservative investors be offered the Portfolios with higher exposure to bonds.
The client risk profile – Portfolio suitability is illustrated in the following table:
| ICICI Bank Multi Manager Portfolio |
Minimum risk profile of investor that should be offered the portfolio |
| • GMMP 35 |
• Conservative |
| • GMMP 50 |
• Conservative |
• GMMP 70
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• Balanced |
• GMMP 90
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• Growth |
Russell’s Investment Approach: Multi Asset Multi Style Multi Manager
Three layers of diversification:
Russell’s investment philosophy is consistent across all of its clients, whether they are multi-billion $ pools of capital, or individual investors advised by Russell’s distribution partners around the world. That philosophy is to reduce unnecessary risk by sensible diversification.
Multi-Asset: At the left you can see a split by asset class – in particular between global bonds and global equities. Both equity and bond investments will include investments from all around the world (US, Europe, Japan, Pacific Basin, Emerging Markets). This is excellent diversification for a core investment.
Multi-Style: Next, within an asset class it is important to ensure that managers with different styles are represented. Why? Because in different market environments, different styles of investing (such as ‘value’ or ‘growth’) are rewarded differently. If one’s aim is to produce consistently strong performance, regardless of the market environment, then one needs to ensure that one chooses managers who will perform well in different market conditions. So in a period when value managers have done very well (such as recently in many markets), it is very important to ensure that investors retain exposure to some growth managers – after all it is impossible to time when the cycle will turn again.
Multi-Manager: Finally you need to pick a combination of talented investment managers to implement the portfolio. And this is what Russell focuses on.
Russell creates diversified investment portfolios, and then identifies some of the best money managers across the world to manage the money. Russell then regularly monitors & changes the managers as required, with the overall objective of consistently delivering above average return at below average risk.
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About Russell Investment Group
Russell is one of the world’s leading investment management firms guiding investments of more then US$2.4 trillion across 35 countries. Russell has spent more than 35 years building and refining a sophisticated process designed specifically to identify the world's most skilled managers, small and large, well-known and lesser known. Their dedication to finding excellence has made them a leading investment consultant for multi-billion dollar investors around the world.
Some of the world’s largest investors come to Russell for advice on selecting and combining investment managers. These include the pension funds of: AT&T, Shell Oil, United Airlines, to name a few, as well as charitable foundations, such as the Bill & Melinda Gates Foundation.
Why ICICI Bank Multi Manager Portfolios
The ICICI Bank Multi-Manager Portfolios have several advantages over other investment avenues such as Mutual Funds:
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Access to some of the best fund managers carefully selected and combined by Russell
Investors’ money is managed by some of the world's best fund managers. e.g., the existing managers include PIMCO, Capital International, and J.P. Morgan. Every year, Russell analysts review the performance of more than 8,600 manager products worldwide. Only those managers with whom Russell has the greatest confidence are then combined together in a complementary manner to manage portfolios.
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Global Diversification
The ICICI Bank Multi Manager Portfolios are diversified across all the major countries, sectors and industries around the world. Global investing not only helps in portfolio diversification but also ensures that the investor gains meaningful exposure to different industries, sectors and regions in the world.
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Better investment control on underlying managers
Investors’ money is not invested in the existing mutual funds of these managers. Once hired, a manager works for Russell on a separate account basis where Russell gives detailed investment guidelines to the managers. This ensures better investment control and Russell’s ability to leverage on the manager’s specific skills.
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Continuous Monitoring & Review of Managers
Since the CORE portion is the most important part of any portfolio, Russell believes in continuously monitoring each of the fund managers on a regular basis, making changes as and when required.
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Institutional quality investment solution
Investment is in the ICICI Bank Multi Manager Portfolios is driven by Russell’s unique Multi Asset-Multi Style-Multi Manager investment process. This is the same investment process utilized by some of the world’s largest institutional investors.
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Cost effectiveness
All this is done at NO ADDITIONAL COST to the investor. The cost of investing in ICICI Bank Multi Manager Portfolios is comparable to investing in any single fund, albeit the benefits far outweigh those of mutual funds. This fee is reflected in the unit price of the fund.
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