Russell Investments has announced changes to the strategic asset allocation (SAA) of its diversified managed funds and pooled superannuation trusts, including three new sector strategies for its diversified portfolios.
The three new sector strategies are the Russell Alpha Fund, the Russell Australian Shares Enhanced Income Fund and the Dexus Wholesale Property Fund (Dexus WPF).
The Russell Alpha Fund is designed to provide an absolute return above an Australian cash benchmark by isolating and delivering an absolute return stream from Russell’s highest conviction managers, according to Russell portfolio manager Andrew Sneddon.
The Australian Shares Enhanced Income Fund focuses on securities with higher dividend yields, and the Dexus Wholesale Property Fund is a portfolio of prime Australian unlisted property assets diversified both regionally and across sectors.
Russell also announced a more tailored approach to its SAA, meaning diversified products will be more tailored to the end-client with respect to liquidity and tax status.
The Alpha Fund has been added across the suite of diversified products to enhance portfolio diversification, the Russell Australian Shares Enhanced Income Fund has been introduced to the tax-exempt units only to generate income for non-tax paying investors, and the Dexus WPF has been added only to the taxed pooled superannuation trust units, Russell stated.
Over the past year Russell has increased its SAA to alternatives in its Balanced Opportunities Unit from near zero to around 10 per cent.
