Russell International Bond $A Hedged A (RIM0007AU) Report & Performance

What is the Russell International Bond $A Hedged A fund?

Russell International Bond $A Hedged A aims to provide a total return, before costs and tax, higher than the Fund’s benchmark over the medium term by providing exposure to a diversified portfolio of predominantly fixed income securities denominated in foreign currencies and largely hedged into Australian dollars.

  • Invests predominantly in debt securities issued by supranationals, international governments, quasi-governments, agencies and corporates as well as structured credit securities including mortgage and asset backed securities.
  • The Fund may also be exposed to low grade or unrated debt securities, emerging markets and currency to a limited extent.
  • Derivatives may be used to obtain or reduce exposure to securities and markets, to implement investment strategies and to manage risk.
  • Foreign currency exposures are largely hedged back to Australian dollars.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Russell International Bond $A Hedged A

Russell International Bond $A Hedged A Fund Commentary September 30, 2023

The Russell Investments International Bond Fund (AUD hedged) narrowly underperformed the benchmark in August.

Interest rates positioning detracted from performance (in aggregate) over the period, including an overweight to shorter-dated UK gilts and an overweight to US Treasuries. Active currency positioning also weighed on returns, including a short Chinese renminbi position and a long Japanese yen exposure. Partly offsetting this was a long US dollar position. Performance was further impacted by our credit positioning, including overweights to US high-yield industrials and European high-yield and investment-grade financials. Positioning within the hard currency emerging markets debt sector also impacted performance over the period; notably overweights to European and Latin American investment-grade debt. At the manager level, BlueBay, credit specialist Western Asset Management and the Russell Investments Integrated Governments Strategy all underperformed their respective benchmarks in August; the latter impacted in part by an overweight to longer-dated US Treasuries. In contrast, both the Russell Investments Intelligent Credit Strategy and corporate credit specialist Schroders outperformed. In terms of overall positioning, the Fund maintains a long duration exposure versus the benchmark, with overweights to US Treasuries and UK gilts and an underweight to Japanese government bonds. Credit positioning remains below strategic levels, with a tactical underweight in place. This tactical underweight reflects our view that credit spreads will widen as the lag effects of interest rate hikes feed into markets.

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 International Bond $A Hedged ARIM0007AUManaged FundsFixed IncomeBonds - GlobalFixed Income - Bonds - Global IndexGlobal Aggregate Hdg Index1.09 BN0.6%00.19%

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 International Bond $A Hedged A3.2%5.74%4.19%-4.16%5.26%6.23%5.97%4.7%-4.87%-17.57%-17.57%

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 International Bond $A Hedged AFixed Income - Bonds - Global Index-0.79%0.02%-0.07%-0.02%-0.02%1.070.87%2.83%0.990.81

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Russell International Bond $A Hedged AYes-https://russellinvestments.com/au-

Product Due Diligence

What is Russell International Bond $A Hedged A

Russell International Bond $A Hedged A is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Bonds - Global 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 International Bond $A Hedged A has Assets Under Management of 1.09 BN with a management fee of 0.6%, a performance fee of 0 and a buy/sell spread fee of 0.19%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Russell International Bond $A Hedged A has returned 3.2% in the last month. The previous three years have returned -4.16% annualised and 4.7% each year since inception, which is when the Russell International Bond $A Hedged 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 International Bond $A Hedged A first started, the Sharpe ratio is 0.37 with an annualised volatility of 4.7%. The maximum drawdown of the investment product in the last 12 months is -4.87% and -17.57% 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 International Bond $A Hedged A has a 12-month excess return when compared to the Fixed Income - Bonds - Global Index of -0.79% and 0.02% 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 International Bond $A Hedged A has produced Alpha over the Fixed Income - Bonds - Global Index of -0.07% in the last 12 months and -0.02% since inception.

What are similar investment products?

For a full list of investment products in the Fixed Income - Bonds - Global Index category, you can click here for the Peer Investment Report.

What level of diversification will Russell International Bond $A Hedged A provide?

Russell International Bond $A Hedged A has a correlation coefficient of 0.81 and a beta of 1.07 when compared to the Fixed Income - Bonds - Global 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 International Bond $A Hedged A and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Russell International Bond $A Hedged A with the Global Aggregate Hdg Index?

For a full quantitative report on Russell International Bond $A Hedged A compared to the Global Aggregate Hdg Index, you can click here.

Can I sort and compare the Russell International Bond $A Hedged A to do my own analysis?

To sort and compare the Russell International Bond $A Hedged A financial metrics, please refer to the table above.

Has the Russell International Bond $A Hedged 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 International Bond $A Hedged A?

If you or your self managed super fund would like to invest in the Russell International Bond $A Hedged A please contact via phone or via email .

How do I get in contact with the Russell International Bond $A Hedged A?

If you would like to get in contact with the Russell International Bond $A Hedged A manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Russell International Bond $A Hedged 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 International Bond Fund (AUD hedged) narrowly underperformed the benchmark in August.

Interest rates positioning detracted from performance (in aggregate) over the period, including an overweight to shorter-dated UK gilts and an overweight to US Treasuries. Active currency positioning also weighed on returns, including a short Chinese renminbi position and a long Japanese yen exposure. Partly offsetting this was a long US dollar position. Performance was further impacted by our credit positioning, including overweights to US high-yield industrials and European high-yield and investment-grade financials. Positioning within the hard currency emerging markets debt sector also impacted performance over the period; notably overweights to European and Latin American investment-grade debt. At the manager level, BlueBay, credit specialist Western Asset Management and the Russell Investments Integrated Governments Strategy all underperformed their respective benchmarks in August; the latter impacted in part by an overweight to longer-dated US Treasuries. In contrast, both the Russell Investments Intelligent Credit Strategy and corporate credit specialist Schroders outperformed. In terms of overall positioning, the Fund maintains a long duration exposure versus the benchmark, with overweights to US Treasuries and UK gilts and an underweight to Japanese government bonds. Credit positioning remains below strategic levels, with a tactical underweight in place. This tactical underweight reflects our view that credit spreads will widen as the lag effects of interest rate hikes feed into markets.

Performance Commentary - July 31, 2023

The Russell Investments International Bond Fund (AUD hedged) outperformed the benchmark in July.

Interest rates positioning contributed positively to performance (in aggregate) over the period, including an overweight to shorter-dated UK gilts and an underweight to Japanese government bonds. Partly offsetting these positions was an overweight to US Treasuries, which underperformed in July. Our long-held overweight to credit also added value, including overweights to European and UK high-yield and investment-grade debt. Positioning within the hard currency emerging markets debt sector added further value over the period; notably overweights to European and Latin American investment-grade debt. In contrast, active currency positioning detracted from overall performance in July. This included a short Swiss franc position and a long Japanese yen exposure. At the manager level, BlueBay was the best performer for the month, benefiting in part from overweights to two- and three-year UK gilts. Credit specialist Western Asset Management also performed well, while corporate credit specialist Schroders, the Russell Investments Intelligent Credit strategy and the Russell Investments Integrated Governments strategy all underperformed.

In terms of overall positioning, the Fund maintains a long duration exposure versus the benchmark, with overweights to US Treasuries and UK gilts and an underweight to Japanese government bonds. Credit positioning remains below strategic levels, with a tactical underweight in place. This tactical underweight reflects our view that credit spreads will widen as the lag effects of interest rate hikes feeds into markets.

Performance Commentary - June 30, 2023

The Russell Investments International Bond Fund (AUD hedged) underperformed the benchmark in the June quarter.

Interest rates positioning detracted from performance (in aggregate) over the period, including overweights to UK gilts and Canadian government bonds. Overweights to Australian government bonds and shorter-duration US Treasuries also weighed on returns; though this was partly offset by an underweight to five-year US Treasuries. An overweight to German bunds also added value. In terms of active currency positioning, a long Japanese yen position and short Australian dollar, Swiss franc and British pound positions impacted performance over the period, while a long US dollar position added value. Meanwhile, credit positioning had no material impact on overall returns in the second quarter. Whilst the Fund benefited from an overweight to US high-yield debt, this was offset by an underweight to hard currency emerging markets debt.

In terms of overall positioning, the Fund maintains a long duration exposure versus the benchmark, with overweights to US Treasuries and UK gilts and an underweight to Japanese government bonds. Credit positioning remains below strategic levels, with a tactical underweight in place. This tactical underweight reflects our view that credit spreads will widen as the lag effects of interest rate hikes feeds into markets.

Performance Commentary - May 31, 2023

The Russell Investments International Bond Fund (AUD hedged) underperformed the benchmark in May.

Interest rates positioning detracted from performance over the period (on aggregate). An underweight to Japanese government bonds weighed on returns, as did an overweight to UK gilts. Yields on UK gilts jumped as rate hike expectations increased in the wake of disappointing inflation data. In the US, an overweight to shorter duration Treasuries impacted performance; though this was partly offset by an underweight to five-year issues, which added value. Credit positioning contributed positively to overall performance in May; notably our exposures to European investment-grade and hard currency emerging markets debt. Meanwhile, active currency positioning had a relatively neutral impact on returns. Whilst the Fund benefited from long US dollar and short Swiss franc positions, these were offset by short euro and long Japanese yen exposures. At the manager level, BlueBay, corporate credit specialist Schroders and the Russell Investments Integrated Governments strategy all underperformed in May. In contrast, credit specialist Western Asset Management and the Russell Investments Intelligent Credit strategy both outperformed; the latter benefiting in part from its exposure to US investment-grade debt. Moving forward, the Fund is slightly long duration versus the benchmark, which is below strategic levels. Credit risk also remains below strategic levels, with a tactical underweight in place amid current, heightened market volatility.

Performance Commentary - April 30, 2023

The Russell Investments International Bond Fund (AUD hedged) performed in line with the benchmark in April. Active currency positioning contributed positively to performance over the period. This included a long euro position; the shared currency rising against its US counterpart on the back of easing European recession fears. Partly offsetting this euro exposure were a long Japanese yen position and a short Swiss franc position. Credit positioning also added value in April; notably overweights to European and UK credit.

An underweight to US securitised credit was also positive for the month. In contrast, interest rates positioning weighed on overall fund performance. This included an (aggregate) overweight to US Treasuries. However, the Fund did benefit from overweights to select US government issues; notably two- and 10-year US Treasuries. In terms of overall positioning, the Fund remains modestly long duration versus the benchmark. We are currently overweight US Treasuries and German Bunds, while underweight Japanese government bonds.

The Fund’s credit risk is below strategic levels with a tactical underweight in place amid current, heightened market volatility. At the manager level, corporate credit specialist Schroders and the Russell Investments Intelligent Credit strategy outperformed their benchmarks over the period; the latter benefiting in part from an overweight to US investment-grade financials. In contrast, BlueBay, credit specialist Western Asset Management and the Russell Investments Integrated Governments strategy all underperformed in April.

Performance Commentary - March 31, 2023

The Russell Investments International Bond Fund (AUD hedged) narrowly underperformed the benchmark in the March quarter. Interest rates positioning detracted from fund performance (in aggregate) over the period. This included an overweight to German bunds and an underweight to Japanese government bonds.

Partly offsetting these positions was an overweight to US Treasuries, which performed well amid the recent disruption to the US banking sector. In terms of active currency positioning, a long US dollar position added value (in aggregate) in the first quarter; though this was offset by a long Japanese yen exposure. Meanwhile, credit positioning added value over the period; notably an overweight to European hard currency emerging markets debt. The Fund also benefited from an underweight to US securitised credit.

Performance Commentary - February 28, 2023

The Russell Investments International Bond Fund (AUD hedged) outperformed the benchmark in February. However, the Fund did deliver negative absolute returns for the month.

Active currency positioning contributed positively to performance over the period; notably a long US dollar (USD) position. The USD made good gains amid US rate hike expectations and the currency’s perceived ‘safe haven’ qualities. A short Australian dollar position also added value. Partly offsetting these positions were long Japanese yen and Norwegian krone exposures. Credit positioning added further, albeit modest, value in February. This included an underweight to US investment-grade debt and overweights to European investment-grade and high-yield debt. An underweight exposure to securitised credit was also positive for the month. In contrast, interest rates positioning weighed on overall fund performance; notably an overweight to shorter-dated US Treasuries. This positioning was partly offset by underweight exposures to German bunds and UK gilts. At the manager level, corporate credit specialist Schroders and the Russell Investments Intelligent Credit strategy outperformed their benchmarks over the period; the latter benefiting in part from underweights to US investment-grade industrials and utilities. In contrast, BlueBay, credit specialist Western Asset Management and the Russell Investments Integrated Governments strategy all underperformed in February.

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