Macquarie has joined FAF Advisors as a manager of the Russell Global Listed Infrastructure Fund - A$ Hedged.
Macquarie Funds Group has been appointed as the second manager to the $99 million Russell Global Listed Infrastructure Fund - A$ Hedged.
FAF Advisors was previously the sole manager in the fund, but will now manage 50 per cent of the fund, with Macquarie managing the remaining half.
Russell Investments said Macquarie had a relatively longer horizon for investment decisions and sought to construct a more focused portfolio.
Macquarie has an average portfolio size of between 40-70 stocks as opposed to 100-125 for FAF Advisors.
"Our propriety analysis shows that the addition of Macquarie materially reduces the aggregate tracking error of the fund, while increasing the beta," Russell said.
"The addition of Macquarie increases the fund's exposure to core infrastructure sectors, including toll roads, airports, electric utilities and sea ports, reducing benchmark-relative underweights in all these sectors. Overweights in other sectors, such as water, rail and alternative energy, are reduced with the addition of the second manager."
Last week, Russell launched three new sector funds with an alternatives focus, including the Russell Global Listed Infrastructure Fund - A$ Hedged.
This fund provides broad diversification and exposure to listed infrastructure securities.
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