Russell Investments on Tuesday announced an agreement with China Asset Management Co. to work together on the development of China AMC’s domestic fund-of-funds business and Russell’s sales efforts among Chinese institutional investors.
Russell said in a news release that the agreement with the Beijing-based firm, a top Chinese fund management company with roughly $154 billion in assets under management, will strengthen its position in an “increasingly important emerging market.”
Under the agreement, Russell Investments will provide investment advice — including guidance on factor exposures and diversification techniques — to China AMC on the design of the domestic fund-of-funds investment products the Chinese firm started building last year.
In return, China AMC “will promote Russell Investments’ global multiasset and sector solutions” to the growing segment of its institutional client base looking to invest assets offshore, the release said.
A Beijing-based spokesman for China AMC couldn’t immediately provide details regarding his firm’s fund-of-funds business build out.
Craig Morris, a Sydney-based spokesman for Russell Investments, said in an e-mail the agreement between Russell and China AMC was an open-ended one.
The news release said the agreement also “sets the stage” for the two firms to work together to launch a series of domestic multimanager products.