Fund manager Russell Investments has shaken up its $735 million multi-manager Australian Opportunities Fund (AOF) as it terminates a mandate with 452 Capital.
452 Capital's 20 per cent value contrarian strategic weighting in the AOF was removed, and Perpetual was hired to manage the same amount but in a concentrated value role.
"Russell has been researching Perpetual Investments for over 15 years, and we have high conviction in both their investment process and team," Russell Investments chief investment officer of Australasia Symon Parish said.
"A key driver in the success of Perpetual is the experience and investment skill of [head of Australian equities] John Sevior, who has over 15 years' experience at Perpetual; together with the research capability of a well-resourced team of investment analysts."
Perpetual's bottom-up approach to stock selection and portfolio construction would put greater emphasis on stock selection as the key driver of the AOF's active return, Parish said.
Other changes to the AOF include a reduction in Arnhem Investment Management's (formerly Fortis Investment Partners) weighting to 12.5 per cent from 15 per cent.
Paradice Investment Management's 10 per cent mandate was boosted to 12.5 per cent.
452 Capital's investment director Peter Morgan is still on leave following a personal health issue that arose last year.
