Russell Global Opportunities A 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. The Fund invests predominantly in a broad range of international shares listed on stock exchanges in developed and emerging international markets. Derivatives may be used to obtain or reduce exposure to securities and markets, to implement investment strategies and to manage risk.
The Russell Investments Global Opportunities Fund performed in line with the benchmark in the September quarter. However, the Fund did deliver negative absolute returns over the period.
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 Russell Global Opportunities A is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large 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 Global Opportunities A has Assets Under Management of 3.05 BN with a management fee of 1.05%, a performance fee of 0 and a buy/sell spread fee of 0.31%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Russell Global Opportunities A has returned 1.42% in the last month. The previous three years have returned 9.68% annualised and 11.56% each year since inception, which is when the Russell Global Opportunities 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 Global Opportunities A first started, the Sharpe ratio is 0.44 with an annualised volatility of 11.56%. The maximum drawdown of the investment product in the last 12 months is -5.04% and -36.93% 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 has a 12-month excess return when compared to the Foreign Equity - Large Multi-Manager Index of -1.73% and 0.42% 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 has produced Alpha over the Foreign Equity - Large Multi-Manager Index of -0.21% in the last 12 months and 0.03% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Multi-Manager Index category, you can click here for the Peer Investment Report.
What level of diversification will Russell Global Opportunities A provide?
Russell Global Opportunities A has a correlation coefficient of 0.99 and a beta of 1.06 when compared to the Foreign Equity - Large 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 Global Opportunities A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Russell Global Opportunities A with the Developed -World Index?
For a full quantitative report on Russell Global Opportunities A compared to the Developed -World Index, you can click here.
Can I sort and compare the Russell Global Opportunities A to do my own analysis?
To sort and compare the Russell Global Opportunities A financial metrics, please refer to the table above.
Has the Russell Global Opportunities 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 Global Opportunities A?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Russell Global Opportunities A. 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 narrowly underperformed the benchmark in August. However, the Fund did deliver positive absolute returns for the month. 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 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 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 - March 31, 2023 The Russell Investments Global Opportunities Fund 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 - December 31, 2022 The Russell Investments Global Opportunities Fund outperformed the benchmark in the December quarter. Contributing to the Fund’s outperformance was strong stock selection in the US, including underweights to large growth names like electric car maker Tesla, Apple and ecommerce giant Amazon.com. All three stocks posted sharp, double-digit declines for the quarter. Stock selection in the UK also added value over the period; notably exbenchmark holdings in electric utility Centrica and ITV and an overweight to private equity firm 3i Group.
At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our positions in Tesla and Amazon.com, this included overweights to Japan’s Ryohin Keikaku and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). Other key holdings to add value were overweights to Dutch bank ING Groep NV and US names HCA Healthcare and TJX Companies. In contrast, stock selection in Continental Europe detracted from overall returns. This included an overweight to Swiss pharmaceutical company Roche Holding AG and an underweight to Danish healthcare firm Novo Nordisk A/S. Stock selection in Asia Pacific ex Japan also weighed on performance, albeit modestly. This included underweights to strong-performing Hong Kong-listed names such as AIA Group and Hong Kong Exchanges and Clearing. Other notable positions to impact returns over the period were underweights to Japan’s Mitsubishi UFJ Financial Group, UK miner Glencore and US oil major Exxon Mobil.
Performance Commentary - September 30, 2022 The Russell Investments Global Opportunities Fund outperformed the benchmark in the September quarter. However, the Fund did deliver negative absolute returns for the period. Contributing to the Fund’s outperformance was positive stock selection in emerging markets, including overweights to Brazil’s Petróleo Brasileiro S.A. and India’s ICICI Bank; both of which posted very strong gains for the quarter. Stock selection in Asia Pacific ex Japan also added value; particularly in Hong Kong. This included underweights to AIA Group and Hong Kong Exchanges and Clearing Ltd. Stock selection within the healthcare space added further value over the period; notably overweights to US names Biogen and HCA Healthcare and an underweight to the UK’s AstraZeneca. Other key positions to add value were underweights to China’s Tencent Holdings and Japanese car maker Toyota.
In contrast, poor stock selection in the US detracted from overall returns. This included underweights to strong-performing growth names like Apple, Tesla and Amazon.com. Stock selection in the UK also weighed on performance; notably overweights to Vodafone and Land Securities Group. At the sector level, stock selection was weakest within information technology. In addition to our holding in Apple, this included overweights to Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics. Other notable positions to impact performance were an overweight to China’s Geely Automobile and an underweight to US oil giant Exxon Mobil. There were no material changes to either the Fund’s structure or manager line up during the quarter.
Performance Commentary - June 30, 2022 The Russell Investments Global Opportunities Fund outperformed the benchmark in the June quarter. However, the Fund did deliver negative absolute returns for the period. Contributing to the Fund’s outperformance was strong stock selection in Japan, including overweights to used car dealer group USS Co., Yakult Honsha and car maker Subaru Corp.; all of which recorded very strong gains for the quarter.
The Fund also benefited from positive stock selection within the consumer discretionary space; notably underweights to poor-performing US names Tesla and Amazon.com. Both stocks posted sizable declines over the period. Other key positions to add value were overweights to fellow US stocks UnitedHealth Group and Cigna Corp. Our active positioning strategy added further value over the period. The strategy was positioned in favour of value and quality to complement our strategic factor positioning. Both value and quality outperformed in the second quarter. In contrast, poor stock selection in the US detracted from returns. This included overweights to Microsoft, Micron Technology and Google parent Alphabet.
At the sector level, stock selection was weakest within financials, including overweights to UK names Aviva and 3i Group. Other notable positions to impact performance over the period were an underweight to the UK’s AstraZeneca and an overweight to Canada’s First Quantum Minerals. In June, we removed Wellington Management Company (Wellington)’s Global Growth Horizon Equity strategy from the Fund’s manager line up and replaced it with Wellington’s Global Growth Equity strategy.
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