Russell tweaks Aussie share fund managers
Russell Investment Grouphas announced two management changes to the structure of its $2.8 billion Australian Shares Fund.
Growth managerABN Amro Asset Managementhas been appointed to replace Alliance Capital Management, and existing managerBalanced Equity Management(BEM) has been given the green light to short stocks, as well as having its weighting in the fund increased from 17.5 per cent to 22 per cent.
Russell portfolio management director Symon Parish says the decision to replace Alliance with ABN Amro preserves the fund’s growth/value style neutrality.
“Their in-depth industry analysis gives it a competitive advantage in understanding industry dynamics,” Parish says of ABN.
BEM has been part of the Australian Shares Fund’s stable of six managers since its inception in 1998, and its lean towards value style investing complements the growth driven focus of ABN Amro.
Russell anticipates the changes to BEM’s participation will essentially double the manager’s expected outperformance over the long term.
Under the new mandate BEM will be allowed to borrow and sell stocks they dislike with the expectation that they can buy those stocks back and return them to the lender at a lower price in the future.
These changes anticipate the fund’s mandate will outperform the benchmark with Russell relying on its multi-manager strategy to spread risk.
Recommended for you
Betashares is to merge its managed account business with InvestSense to form a purpose-built option for financial advisers, forecasting a positive outlook for future industry growth.
With fund managers using ETFs as a way to reach the adviser market with a diversified product range, Betashares has shared how many ETFs were listed and closed during the first half of 2025.
Platinum Asset Management’s head of investment, Douglas Isles, has departed the fund manager after 12 years as the firm reshapes the business amid a merger with L1 Capital.
Investment consultancy Ascalon Capital has looked to research houses for hires, appointing one each from Zenith and Lonsec while Zenith has made an internal promotion.
