ScotiaMcLeod, the full service wealth management arm of Scotiabank, has established a distribution agreement with Frank Russell Canada Ltd.

Russell is the investment manager of the Sovereign Investment Program and LifePoints Portfolios which are both managed, fee-based investment programs utilizing the exclusive Russell 3D investment process. This announcement marks the third major distribution arrangement for Russell in Canada.

The announcement comes at a time when managed fee-based assets are fuelling the growth of the wealth market. According to statistics provided by Investor Economics, fee-based investment programs now account for 55.5% of managed assets, up sharply (and steadily) from 34% at the end of 1996.

Fund wraps have had the largest growth in assets. Assets under management have grown 3.6 times from $13.8 billion to $50.3 billion. That amount exceeds what the total value of all the managed assets market was in December of 1996.

Commenting on the arrangement, George Garner, managing director and national sales manager of ScotiaMcLeod said, “This agreement is yet another example of ScotiaMcLeod’s continuing commitment to innovation within the arena of managed assets. In addition to our other outstanding service offerings, the Sovereign Investment Program and LifePoints Portfolios enable clients to participate in a professional money management program through the combined expertise of ScotiaMcLeod Investment Executives and Frank Russell Canada.”

The arrangement marks the third redistribution arrangement for Russell, and the second in a single year. “Russell is extremely pleased to form this relationship with ScotiaMcLeod, one of the country’s most established and reputable investment firms,” said Joe Perrin, president and managing director for Frank Russell Canada.

The Sovereign Investment Program and LifePoints Portfolios offer investors strategic allocation across asset classes based upon their investor profile. Each asset class is diversified into multiple investment styles and implemented using multiple investment managers.

Russell continuously manages and monitors the funds and their underlying managers, making changes to the managers within the program when they deem it beneficial.

This process is designed to reduce the need for clients to switch mutual funds as the market environment favours or punishes various investment styles, or as money management firms change over time.

Developed by Russell over 30 years ago, this diversified investment process, now known as Russell 3D, is designed to deliver consistent performance, while providing managed levels of risk.