Russell Investments has made a series of changes to the managers of its $880 million International Property Securities Fund, hedged for the Australian dollar.
Fund manager Perennial, which had a 15 per cent weighting in the product, was dropped, while the Russell Select Holdings Strategy was introduced at a 5 per cent weighting.
"The addition of Select Holdings will further concentrate the portfolio and is expected to enhance fund level excess returns," Russell Investments portfolio manager Bruce Eidelson said.
Select Holdings is a direct shares portfolio dedicated to the best collective ideas of Russell's top fund managers.
"This innovative strategy developed by Russell Investments aims to amplify the fund's alpha potential by accentuating the stock picking skills of our managers," Eidelson said.
"Russell research has demonstrated that commonly held overweight stocks outperform uniquely held overweights."
In addition to adding the Russell Select Holdings Strategy, Russell also increased the weightings of existing fund managers within the fund to make up for the remaining share of the portfolio.
AEW Capital Management's strategic weight rose to 31 per cent from 25 per cent, Cohen & Steer's to 33 per cent from 30 per cent, and Invesco to 31 per cent from 30 per cent.
