Russell gets aggressive with Australian equities

Russell Investment Grouphas enhanced its multi-style/multi-manager Australian Shares Fund with the inclusion of an aggressive fund option and appointing five managers to the offering.

Growth styleABN Amro, value style 452 Capital and market-orientated Portfolio Partners have each been awarded mandates to manage 26 per cent of the Russell Australian Shares Aggressive Fund, while long-short manager Westpeak and small caps managerJM Asset Managementwill each manage 16 and 6 per cent respectively.

“This fund is designed for investors who are looking to boost the alpha potential of their Australian shares portfolio, but most importantly, are happy to do so at extra risk,” Russell director Stephen Roberts says.

The higher risk/return strategies used by the managers include short selling, holding concentrated portfolios and investing in small cap stocks.

The aggressive option enhances the choice within the Australian Shares Fund, which prior to the addition included market orientated, value, growth, large cap, thematic and moderate growth options.

According to Roberts the level of volatility meant aggressive strategies were not for everyone, and should be considered as part of a well-diversified Australian shares portfolio.

“Investors in the aggressive fund are advised to take a long-term outlook of seven or more years, and be prepared to accept high levels of short to medium term volatility,” he says.