Russell adds new dimension to Australian Shares Fund

fund manager portfolio manager

21 October 2009
| By Corrina Jack |

Russell Investments has appointed value fund manager Dimensional Fund Advisors to manage 10 per cent of its Russell Australian Shares Fund.

Dimensional was chosen following Russell research that confirmed a mild bias to value shares in a core Australian equity portfolio could increase performance over time.

Dimensional believes that investors demand a higher return for investing in more risky value companies than when investing in growth companies.

The appointment of Dimensional will provide Russell with an increase in exposure to smaller companies and a more consistent exposure to value premiums, according to Russell Investments portfolio manager, Kathy Cave.

It will add value by using an investment process that captures risk premiums through minimising turnover, managing market frictions, harnessing the effects of momentum and recognising the impact of liquidity seekers.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 3 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 3 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 3 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 week 2 days ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

1 week 1 day ago

The Federal Court has given a verdict on ASIC’s case against Dixon Advisory director Paul Ryan which had alleged he breached his director duties....

1 week ago