Russell Australian Share A (RIM0006AU) Report & Performance

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Russell Australian Share A

Russell Australian Share A Fund Commentary September 30, 2023

The Russell Investments Australian Shares Fund narrowly underperformed the benchmark in the September quarter.

Contributing to the Fund’s underperformance was a material overweight to the poorperforming healthcare space. Stock selection within the sector also weighed on returns, including overweights to ResMed, New Zealand’s Fisher & Paykel Healthcare and CSL Ltd. All three stocks recorded sharp declines for the quarter. Performance was further impacted by an underweight exposure and stock selection within the energy space; notably underweights to Woodside Energy Group, Paladin Energy and coal miner New Hope. Other key holdings to impact returns over the period were an overweight to mobile payments company Block and underweights to Wesfarmers and Carsales.com. In contrast, the Fund benefited from stock selection amongst industrials. This included an underweight to Transurban Group, which fell 11% after the competition watchdog denied the company’s planned acquisition of the EastLink toll road in Melbourne. Stock selection amongst property trusts also added value over the period; notably an overweight to industrial property giant Goodman Group. An underweight exposure and stock selection within the consumer staples sector added further value, including underweights to major grocery retailers Coles and Woolworths. Other notable positions to contribute positively to performance were overweights to imaging IT provider Pro Medicus, gaming machine maker Aristocrat Leisure and Suncorp Group.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Russell Australian Share ARIM0006AUManaged FundsDomestic EquityAustralian Multi-ManagerDomestic Equity - Multi-Manager IndexASX Index 200 Index253.77 M0.75%00.34%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Russell Australian Share A7.36%8.76%12.43%9.09%7.9%12.97%13.67%13.63%-8.03%-12.31%-46.69%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Russell Australian Share ADomestic Equity - Multi-Manager Index0.59%-0.7%-0.03%-0.06%-0.06%1.112.1%2.94%0.990.98

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Russell Australian Share AYes-https://russellinvestments.com/au-

Product Due Diligence

What is Russell Australian Share A

Russell Australian Share A is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Multi-Manager Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Russell Australian Share A has Assets Under Management of 253.77 M with a management fee of 0.75%, a performance fee of 0 and a buy/sell spread fee of 0.34%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Russell Australian Share A has returned 7.36% in the last month. The previous three years have returned 9.09% annualised and 13.63% each year since inception, which is when the Russell Australian Share A first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Russell Australian Share A first started, the Sharpe ratio is 0.37 with an annualised volatility of 13.63%. The maximum drawdown of the investment product in the last 12 months is -8.03% and -46.69% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Russell Australian Share A has a 12-month excess return when compared to the Domestic Equity - Multi-Manager Index of 0.59% and -0.7% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Russell Australian Share A has produced Alpha over the Domestic Equity - Multi-Manager Index of -0.03% in the last 12 months and -0.06% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Multi-Manager Index category, you can click here for the Peer Investment Report.

What level of diversification will Russell Australian Share A provide?

Russell Australian Share A has a correlation coefficient of 0.98 and a beta of 1.11 when compared to the Domestic Equity - Multi-Manager Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Russell Australian Share A and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Russell Australian Share A with the ASX Index 200 Index?

For a full quantitative report on Russell Australian Share A compared to the ASX Index 200 Index, you can click here.

Can I sort and compare the Russell Australian Share A to do my own analysis?

To sort and compare the Russell Australian Share A financial metrics, please refer to the table above.

Has the Russell Australian Share A been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Russell Australian Share A?

If you or your self managed super fund would like to invest in the Russell Australian Share A please contact via phone or via email .

How do I get in contact with the Russell Australian Share A?

If you would like to get in contact with the Russell Australian Share A manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Russell Australian Share A. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - August 31, 2023

The Russell Investments Australian Shares Fund performed in line with the benchmark in August.

Stock selection within the information technology space contributed positively to performance over the period, including overweights to data centre operator NEXTDC and software companies Altium and Xero. All three stocks recorded good gains in August. The Fund also benefited from positive stock selection amongst property trusts; notably an overweight to industrial property giant Goodman Group, which climbed almost 14% on the back of an encouraging earnings update. Other property-related positions to add value were underweights to Abacus Storage King and Charter Hall Long WALE REIT, which leases high-quality property assets to corporate and government tenants on a long-term basis. Stock selection within industrials and materials added further value over the period, including an overweight to gold producer Perseus Mining. In contrast, stock selection within the healthcare space detracted from overall performance in August; notably overweights to poor-performing names like ResMed and New Zealand’s Fisher & Paykel Healthcare. Stock selection amongst financials also weighed on returns. This included overweights to Afterpay owner Block and QBE Insurance and an underweight to Macquarie Group. Performance was further impacted by stock selection within the consumer discretionary sector; notably an underweight to Wesfarmers, which gained 10.6% on the back of better-than-expected earnings. Other notable positions to impact returns were underweights to Carsales.com, Brambles and Woodside Energy Group.

Performance Commentary - July 31, 2023

The Russell Investments Australian Shares Fund outperformed the benchmark in July. Contributing to the Fund’s outperformance was stock selection within the materials space.

This included an underweight to iron ore major Fortescue Metals Group, which fell after management warned that inflationary pressures would lead to higher unit costs over the next 12 months. Other materials positions to add value were overweights to Sandfire Resources and BlueScope Steel. The Fund also benefited from stock selection within the consumer discretionary sector; notably an overweight to IDP Education, which climbed almost 13% over the period. Stock selection amongst industrials added further value in July, including underweights to toll road operator Transurban Group and supply-chain logistics firm Brambles. In contrast, stock selection within the information technology space detracted from overall performance. This included an underweight to internet connectivity business Megaport, which climbed almost 42% after management upgraded the company’s earnings guidance. A material overweight to the poor-performing healthcare sector also weighed on returns; notably an overweight to biotech company CSL Ltd. Performance was further impacted by stock selection amongst utilities, including an underweight to AGL Energy, which hit a 52-week high in July. Other notable positions to impact returns were underweights to Commonwealth Bank of Australia and Woodside Energy Group; both of which made strong gains for the month.

Performance Commentary - June 30, 2023

The Russell Investments Australian Shares Fund performed in line with the benchmark in the June quarter.

Stock selection within the strong-performing information technology space contributed positively to performance over the period. This included overweights to Xero, WiseTech Global and NEXTDC; all of which posted double-digit gains for the quarter. Stock selection amongst financials also added value; notably material overweights to Suncorp Group and QBE Insurance. Stock selection within the industrials sector added further value over the period, including overweights to Aurizon Holdings, plumbing supplies group Reece Ltd. and engineering company Worley Ltd. Other notable positions to add value were underweights to Mineral Resources, Wesfarmers and New Zealand’s a2 Milk Company. In contrast, stock selection within the consumer discretionary space detracted from overall performance in the second quarter. This included overweights to poorperforming names like IDP Education, jewellery chain Lovisa and Premier Investments; owner of brands like Just Jeans, Smiggle and Peter Alexander. Stock selection within the materials sector also weighed on returns; notably an overweight to gold miner Perseus Mining, which fell almost 31% over the period, and underweights to Pilbara Minerals and James Hardie Industries. Other key holdings to impact performance were underweights to AGL Energy, which climbed more than 34% for the quarter, Insurance Australia Group and Commonwealth Bank of Australia.

Performance Commentary - May 31, 2023

The Russell Investments Australian Shares Fund outperformed the benchmark in May.

Contributing to the Fund’s outperformance was an overweight to the information technology sector. This included overweights to Xero, WiseTech Global and NEXTDC; all of which recorded strong gains for the month. We have a material overweight to NEXTDC in particular; the stock, like the wider tech sector, benefiting from the artificial intelligence theme that drove strong gains across major technology names globally, including US software giant NVIDIA. Stock selection amongst industrials also added value in May; notably overweights to engineering firm Worley and rail transport company Aurizon. Stock selection amongst property trusts added further value over the period, including an overweight to industrial property giant Goodman Group. Other notable positions to add value were underweights to Wesfarmers and iron ore major Fortescue Metals Group. Both stocks fell sharply in May. In contrast, stock selection within the materials sector detracted from overall performance. This included an overweight to gold producer Perseus Mining, which fell almost 20% after the company withdrew staff from Sudan amid armed conflict in and around the country’s capital. Overweights to BlueScope Steel and Sandfire Resources also weighed on returns. Performance was further impacted by stock selection within the consumer discretionary space; notably an overweight to IDP Education. Other key holdings to impact returns were overweights to poor-performing names like Whitehaven Coal and Super Retail Group, owner of brands like Rebel and Supercheap Auto.

Performance Commentary - April 30, 2023

The Russell Investments Australian Shares Fund performed in line with the benchmark in April.

Stock selection within the materials sector contributed positively to performance over the period, including underweights to major miners Fortescue Metals Group and BHP Group; both of which fell amid a build-up of iron ore inventories and concerns over Chinese demand. The Fund also benefited from stock selection within the healthcare space; notably an overweight to prostate cancer imaging business Telix Pharmaceuticals, which climbed almost 50% following a better-than-expected corporate update. Stock selection amongst financials added further value in April, including overweights to QBE Insurance, ANZ Group and National Australia Bank. Other key holdings to add value over the period were underweights to Mineral Resources and New Zealand’s a2 Milk Company. In contrast, stock selection within the industrials sector detracted from overall performance, including an underweight to toll road operator Transurban Group, which rose almost 6% after average daily traffic volumes increased sharply in the March quarter. Stock selection amongst property trusts also weighed on returns in April; notably underweights to strongperforming names like Stockland, Scentre Group and Mirvac Group. Our broader underweight to the sector further impacted performance, albeit modestly. Other notable positions to impact returns were an underweight to Wesfarmers and overweights to gold miner Perseus Mining and iron ore major Rio Tinto.

Performance Commentary - March 31, 2023

The Russell Investments Australian Shares Fund outperformed the benchmark in the March quarter.

Contributing to the Fund’s outperformance was strong stock selection within the financials space. This included material underweights to Commonwealth Bank of Australia and Westpac Banking Corp.; both of which significantly underperformed the broader market over the period. Stock selection within the information technology sector also added value in the first quarter; notably overweights to strong-performing names like Xero, WiseTech Global and Altium. Stock selection amongst consumer discretionary names also contributed positively to performance, including a sizable overweight to gaming machine maker Aristocrat Leisure; the stock jumping almost 22% over the period. Other notable positions to add value were overweights to plumbing supplies group Reece Ltd. and Viva Energy Group. In contrast, stock selection within the materials sector detracted from overall returns. This included an underweight to iron ore major Fortescue Metals Group and a nil exposure to lithium miner Liontown Resources, which almost doubled in price after US commodities giant Albemarle offered to buy the company. Stock selection within the consumer staples space also weighed on returns; notably underweights to Woolworths and Coles. Both stocks made strong gains over the period.

Our broader underweight to the consumer staples sector also impacted performance.

Performance Commentary - February 28, 2023

The Russell Investments Australian Shares Fund outperformed the benchmark in February.

Contributing to the Fund’s outperformance was strong stock selection amongst financials, including overweights to QBE Insurance and Suncorp Group and a material underweight to Commonwealth Bank of Australia (CBA). Both QBE and Suncorp rose on the back of positive earnings updates, while CBA, which hit a record high early in the period, fell on concerns the bank’s profit margin may have reached its peak given rising funding costs and the increasing risk of loan defaults. Stock selection within the consumer discretionary space also added value over the period; notably an overweight to gaming machine maker Aristocrat Leisure, which climbed 7.6% for the month. Other notable positions to add value in February were underweights to Domino’s Pizza and lithium producer Pilbara Minerals; both of which fell sharply over the period. In contrast, stock selection within materials detracted from overall performance, including overweights to IGO Ltd. and Evolution Mining. Stock selection amongst industrials also weighed on returns; notably an underweight to toll road operator Transurban Group, which rose after management announced record first-half earnings. Other key holdings to impact performance were underweights to Woolworths, Orica and Medibank Private.

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