Frank Russell drops Deutsche, Westpeak
TheFrank Russellgroup has droppedDeutsche Asset Managementand Westpeak Global Advisors from the series of managers on its multi-manager investment funds in favour of the lesser known SG Hiscock and Company and Jacobs Levy Equity Management.
SG Hiscock, a boutique manager based in Melbourne, will take over from Deutsche as one of only two managers on Russell’s listed property trust fund, the Australian Property Securities Fund
The specialist property securities manager, formed in 2001 by formerNational Asset Management(NAM) chief investment officer Stephen Hiscock, will manage 40 per cent of the fund alongsideRothschild Australia Asset Management, which will manage the remaining 60 per cent.
Jacob Levy, a US based fund manager, will replace Westpeak as a manager on the Russell International Share Fund.
The group will manage 15 per cent of the Russell fund, with a mandate to invest exclusively in the US stock market against a benchmark of the MSCI US Index.
Frank Russell managing director in Australia Alan Schoenheimer says the two appointments confirm the group’s willingness to look beyond brand name managers.
“Russell investigates more than 1600 specialist managers and more than 6100 investment products worldwide. Some of managers we find are household names, but others like SG Hiscock and Jacobs Levy are less well known because their services are only available to large institutional investors,” he says.
Schoenheimer says the appointment of both managers will have a positive impact on the performance of both the International Share Fund and the Australian Properties Securities Fund.
In the 12 months to the end of May, the $2 billion international share fund returned negative 21.65 per cent, while the $500 million property securities fund returned 19.07 per cent.
The Frank Russell group, which has distributed its multi-manager funds to retail investors through theANZbank for four years, has this year signed distribution agreements to sell the funds through both theProfessional Investment Services(PIS)Associated Plannersdealer groups.
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