The Frank Russell Company and Société Générale Asset Management (SGAM) have very high expectations for their joint venture to introduce multi-manager funds to continental Europe .

Len Brennan, newly created head of Russell's international operations, says: We are expecting several billions of dollars in the next three to four years."

The funds will be targeted at both institutional and retail investors, but will have a different class of share for larger investments from institutions.

It is the first time a major European financial group has developed multi-manager funds. SGAM chief executive officer Phillipe Collas says: "It demonstrates our capacity to innovate in the European investment fund market." Though the agreement is on an exclusive basis, the intention is to use a range of distribution channels in continental markets, particularly the networks associated with the SocGen group.

The Dutch market has been excluded from the agreement because Russell's marketing office is already active there among pension funds and other investors. "There are more than enough opportunities in the rest of the continent," says Brennan.

A new company is being formed in Ireland on a 50/50 basis, owned by SGAM and Russell, called SG/Russell Asset Management. A range of funds will be offered through an Irish-based umbrella, specialising in international asset categories, but widening to include all types of assets. Each fund will represent a specific asset class and be managed by at least three different fund management groups.

Brennan, who succeeds P Craig Ucland in the international operations position, was head of operations in Europe, Middle East and Africa and will be responsible for all operations outside the US. He will continue to be based in London. Ucland has been made chief financial officer. Fennell Betson"