Russell Global Opportunities $A Hedged aims to significantly outperform the Fund’s benchmark, before costs and tax, over the long term by providing exposure to a diversified portfolio of predominantly international shares, largely hedged into Australian dollars.
The Russell Investments Global Opportunities Fund (AUD hedged) narrowly underperformed the benchmark in the September quarter.
An overweight exposure and strong stock selection in Japan contributed positively to performance, including our holdings in retailer Ryohin Keikaku Co., Toyo Tire Corp. and car maker Suzuki Motor Corp. All three stocks posted strong, double-digit gains for the quarter. Stock selection in the UK also added value over the period; notably overweights to electric services company Centrica and multinational aerospace and defence firm RollsRoyce. A short position in insurer Prudential added further value after the stock fell more than 20% over the period. Other notable positions to add value were overweights to Canadian integrated energy company Suncor Energy and an ex-benchmark holding in Taiwanese semiconductor manufacturing company Alchip Technologies. In contrast, poor stock selection in the US detracted from overall performance, including underweights to chipmaker NVIDIA Corp., oil major Exxon Mobil and pharmaceutical company Eli Lilly & Co. Other US positions to impact returns were overweights to HCA Healthcare, Microsoft and medical device maker Insulet Corp. Stock selection in emerging markets also weighed on performance. This included our holdings in Chinese mining company Ganfeng Lithium Co. and South Korea’s Samsung Electronics. Performance was further impacted by stock selection in Continental Europe; notably overweights to French luxury goods maker LVMH Moët Hennessy Louis Vuitton SE, Swiss peer Cie Financiere Richemont SA and German car makers Mercedes-Benz AG and BMW.
What is Russell Global Opportunities $A Hedged Russell Global Opportunities $A Hedged is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Currency Hedged 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 Global Opportunities $A Hedged has Assets Under Management of 1.32 BN with a management fee of 1.05%, a performance fee of 0 and a buy/sell spread fee of 0.35%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Russell Global Opportunities $A Hedged has returned 3.52% in the last month. The previous three years have returned 5.53% annualised and 14.31% each year since inception, which is when the Russell Global Opportunities $A Hedged 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 Global Opportunities $A Hedged first started, the Sharpe ratio is 0.65 with an annualised volatility of 14.31%. The maximum drawdown of the investment product in the last 12 months is -8.63% and -23.45% 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 Global Opportunities $A Hedged has a 12-month excess return when compared to the Foreign Equity - Currency Hedged Index of -1.29% and -0.13% 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 Global Opportunities $A Hedged has produced Alpha over the Foreign Equity - Currency Hedged Index of -0.16% in the last 12 months and -0.05% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Currency Hedged Index category, you can click here for the Peer Investment Report.
What level of diversification will Russell Global Opportunities $A Hedged provide?
Russell Global Opportunities $A Hedged has a correlation coefficient of 0.99 and a beta of 1.05 when compared to the Foreign Equity - Currency Hedged 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 Global Opportunities $A Hedged and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Russell Global Opportunities $A Hedged with the Developed -World Index?
For a full quantitative report on Russell Global Opportunities $A Hedged compared to the Developed -World Index, you can click here.
Can I sort and compare the Russell Global Opportunities $A Hedged to do my own analysis?
To sort and compare the Russell Global Opportunities $A Hedged financial metrics, please refer to the table above.
Has the Russell Global Opportunities $A Hedged 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 Global Opportunities $A Hedged?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Russell Global Opportunities $A Hedged. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in August.
Much of the Fund’s underperformance was driven by poor stock selection in the US. This included underweights to strong-performing names like chip maker NVIDIA, e-commerce platform Amazon.com and pharmaceutical company Eli Lilly & Co. Other US positions to impact returns were overweights to Meta Platforms (formerly Facebook) and Microsoft.
Stock selection in Continental Europe also weighed on performance in August; notably overweights to Swiss-based luxury goods maker Compagnie Financière Richemont SA and German car makers Bayerische Motoren Werke AG (BMW) and Mercedes-Benz Group A/G. Other key holdings to impact returns were ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and South African miner AngloGold Ashanti. Both stocks underperformed the broader market over the period. In contrast, the Fund benefited from strong stock selection in the UK; notably a short position in healthcare firm AstraZeneca and overweights to Rolls-Royce and energy provider Centrica. Stock selection in Japan also added value over the period. This included overweights to Toyo Tire Corp., Maruichi Steel Tube and pharmaceutical company Nippon Shinyaku Co. All three stocks recorded strong, double-digit gains for the month. Other notable positions to contribute positively to performance in August were overweights to Saudi Arabian Oil Co. and US names TJX Companies and Mastercard.
Performance Commentary - July 31, 2023 The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in July. However, the Fund did deliver positive absolute returns for the month.
Stock selection in emerging markets detracted from performance over the period; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co., which fell after management said it expected sales to decline this year amid waning demand. Other emerging markets positions to impact returns were underweights to South Korean steel maker POSCO Holdings and Chinese shopping platform Meituan. Stock selection in Continental Europe also weighed on performance in July, including overweights to Dutch multinational brewing company Heineken N.V. and German car makers Mercedes-Benz and BMW. Other notable positions to impact returns were an underweight to US chipmaker NIVIDA Corp. and an overweight to Japanese electronics company Keyence Corp. In contrast, the Fund benefited from stock selection in the UK; notably overweights to Centrica and Land Securities Group. Both stocks recorded very strong gains for the month. Stock selection in the US also added value in July. This included an underweight to Apple and overweights to Meta Platforms (formerly Facebook), Google parent Alphabet and ratings agency MSCI, Inc. Stock selection in Canada added further value over the period; particularly amongst the country’s large miners. This included overweights to First Quantum Minerals and Ivanhoe Mines. Other key holdings to contribute positively to performance were overweights to Japanese retailer Ryohin Keikaku Co. and US security systems services company Carrier Global.
Performance Commentary - June 30, 2023 The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in the June quarter.
Contributing to the Fund’s underperformance was stock selection in the US, including underweights to large growth names like NVIDIA Corp., Apple and electric car maker Tesla; all of which posted very strong gains for the quarter. Other US positions to impact returns were underweights to e-commerce giant Amazon.com and semiconductor manufacturer Broadcom. Stock selection in Japan also weighed on performance; notably ex-benchmark holdings in retailer Ryohin Keikaku Co. and electronics company Casio Computer Co. Both stocks fell sharply over the period. Performance was further impacted by stock selection in Canada, albeit modestly. This included an overweight to integrated energy company Suncor Energy and an underweight to multinational e-commerce platform Shopify. In contrast, the Fund benefited from stock selection in the UK, including overweights to private equity firm 3i Group and multinational energy services and solutions company Centrica. An underweight to British American Tobacco also added value. Stock selection in Continental Europe added further value over the period; notably overweights to Dutch bank ING Groep N.V. and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). Stock selection in emerging markets also contributed positively to returns, though this was largely offset by our broader overweight to the region. Emerging markets underperformed their developed counterparts over the period.
Performance Commentary - May 31, 2023 The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in May.
Stock selection in the US detracted from performance over the period; notably underweights to large cap names like NVIDIA Corp., Apple and electric car maker Tesla. All three stocks posted very strong gains in May. Other US positions to impact returns were underweights to e-commerce giant Amazon.com and streaming platform Netflix.
Stock selection in Japan also weighed on performance, albeit modestly. This included underweights to technology companies Tokyo Electron and Advantest Corp.; both of which recorded strong, double-digit gains for the month. Other key holdings to impact performance were overweights to UK telco Vodafone and Dutch multinational brewing company Heineken NV. In contrast, stock selection within emerging markets added value in May; notably technology names. This included an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and overweights to South Korea’s SK hynix and Samsung Electronics. Stock selection in Continental Europe also added value over the period, including an underweight to French oil major TotalEnergies SE and overweights to German car makers BMW and Mercedes-Benz. At the sector level, stock selection was strongest within financials; notably an overweight to UK private equity firm 3i Group. Other notable positions to add value in May were underweights to UK names Shell and British American Tobacco.
Performance Commentary - April 30, 2023 The Russell Investments Global Opportunities Fund (AUD hedged) narrowly outperformed the benchmark in April. Stock selection in the UK contributed positively to performance over the period; notably ex-benchmark holdings in stockbroker Numis Corp. and price comparison website Moneysupermarket.com. Both stocks recorded very strong gains in April. The Fund also benefited from positive stock selection in the US, including an underweight to electric car maker Tesla, which fell almost 20% over the period.
Other US positions to add value were overweights to Meta Platforms (formerly Facebook), AutoZone and HCA Healthcare. At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our positions in Tesla and AutoZone, this included short positions in China’s largest retailer JD.com and Japanese car maker Toyota Motor Corp. In contrast, an overweight exposure and poor stock selection within emerging markets detracted from overall performance in April; notably our holdings in Taiwanese names MediaTek and Taiwan Semiconductor Manufacturing Co. Stock selection in Continental Europe also weighed on returns.
This included underweights to German software company SAP SE and French names TotalEnergies SE and L’Oréal S.A. All three stocks posted strong gains for the month. In terms of sectors, stock selection within the information technology space impacted the most on performance, including an underweight to US heavyweight Apple. A material underweight to the energy sector also weighed on returns; notably underweights to oil majors Shell (UK) and Exxon Mobil (US).
Performance Commentary - March 31, 2023 The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in the March quarter.
Contributing to the Fund’s underperformance was poor stock selection in the US, including underweights to large growth names like Apple, NVIDIA Corp. and electric car maker Tesla, which climbed almost 71% over the period. Other US positions to impact returns were an underweight to e-commerce giant Amazon.com and an overweight to Johnson & Johnson. Stock selection in Continental Europe also weighed on performance; notably overweights to Switzerland’s Roche Holding AG and Dutch bank ING Groep NV.
Performance was further impacted by poor stock selection in Japan, including an overweight to pharmaceutical company Nippon Shinyaku Co., which fell 21% over the period. Other notable positions to impact returns were overweights to US healthcare names The Cigna Group and UnitedHealth Corp. In contrast, the Fund benefited from strong stock selection in the UK. This included an overweight to private equity firm 3i Group as well as underweights to British American Tobacco and commodities giant Glencore.
Stock selection in emerging markets also added value over the period; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and an overweight to China’s Alibaba Group. Other key holdings to add value were overweights to German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW).
Performance Commentary - February 28, 2023 The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in February.
Much of the Fund’s underperformance was driven by poor stock selection in the US; notably underweights to large growth names like Apple, NVIDIA Corp. and electric car maker Tesla. All three stocks posted strong gains for the month. Stock selection within emerging markets also weighed on returns, including an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and overweights to poor-performing Chinese names Geely Automobile and Country Garden Services; a residential property management service provider. Performance was further impacted by poor stock selection in Continental Europe, including an underweight to Danish pharmaceutical company Novo Nordisk A/S.
In contrast, the Fund benefited from positive stock selection in the UK; notably underweights to major miners Glencore and Rio Tinto (Plc). Both stocks fell sharply on the back of weakness across the broader commodities complex. Overweights to multinational advertising company WPP and Rolls-Royce Holdings also added value. An underweight exposure to Australia added further, albeit modest, value over the period; notably underweights to three of the country’s ‘Big Four’ banks: Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp. Other key holdings to add value were an overweight to German car maker Mercedes-Benz Group AG and a short position in China’s JD.com.
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