Value fund manager Dimensional Fund Advisors has secured a mandate to manage 10 per cent of the Russell Australian Shares Fund.
Russell Investments said Dimensional's appointment would cause little change to the overall characteristics of the fund, however, it would result in a more consistent value exposure.
"Since the inception of the Russell Australian Shares Fund we have maintained a slight bias towards value and the appointment of Dimensional provides the fund with a more consistent exposure to the value premium and upgrades our manager line-up," Russell Investments portfolio manager Kathy Cave said.
Dimensional's smaller-cap focus will also result in a slight increase in the fund's exposure to smaller companies.
Recent research from Russell Investments reconfirmed that a mild bias to value shares in a core Australian equity portfolio could deliver a boost to performance in the long-term and the fund had been restructured to reflect that.
