Russell International Shares Hedged A (RIM0009AU) Report & Performance

What is the Russell International Shares Hedged A fund?

Russell International Shares Hedged A aims to provide a total return, before costs and tax, higher than the Fund’s benchmark over the long term by providing exposure to a diversified portfolio of predominantly international shares largely hedged into Australian dollars.

  • The Fund invests predominantly in a broad range of international shares listed on stock exchanges in developed international markets.
  • The Fund may also be exposed to emerging market shares.
  • 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 Shares Hedged A

Russell International Shares Hedged A Fund Commentary September 30, 2023

The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in the September quarter. However, the Fund did deliver negative absolute returns over the period.

Stock selection in Continental Europe contributed positively to fund performance over the period; notably overweights to leading Danish pharmaceutical company Novo Nordisk A/S, Swiss bank UBS Group AG and Swiss-French human resources company Adecco Group AG. All three stocks recorded strong, double-digit gains for the quarter. Stock selection in Japan also added value, including overweights to car maker Honda Motor Co. and insurers T&D Holdings and MS&AD Insurance Group. Stock selection in Asia ex Japan added further value in the third quarter; notably an underweight to Hong Kongbased multinational insurance and finance company AIA Group, which fell more than 16% over the period. In contrast, stock selection in the US detracted from overall performance. This included underweights to chipmaker NVIDIA Corp., pharmaceutical company Eli Lilly & Co. and oil major Exxon Mobil; all of which posted very strong gains for the quarter. Other US positions to impact returns were overweights to HCA Healthcare, ratings agency Moody’s Corp. and Microsoft. Stock selection in emerging markets also weighed on returns; notably our holdings in India’s HDFC Bank, Brazilian financial services company Banco Bradesco S.A. and South Korea’s Samsung Electronics. Performance was further impacted by stock selection in the UK, albeit modestly. This included an overweight to drinks maker Diageo and an underweight to multinational aerospace and defence company Rolls-Royce.

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 Shares Hedged ARIM0009AUManaged FundsForeign EquityCurrency HedgedForeign Equity - Currency Hedged IndexDeveloped -World Index311.60 M0.98%00.29%

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 Shares Hedged A3.75%4.35%22.49%6.95%5.43%11.65%14.57%14.92%-7.35%-21.65%-54.37%

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 Shares Hedged AForeign Equity - Currency Hedged Index2.14%-0.51%NA%NA%NA%10.95%2.58%10.99

Product Details

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

Product Due Diligence

What is Russell International Shares Hedged A

Russell International Shares Hedged A 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 International Shares Hedged A has Assets Under Management of 311.60 M with a management fee of 0.98%, a performance fee of 0 and a buy/sell spread fee of 0.29%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Russell International Shares Hedged A has returned 3.75% in the last month. The previous three years have returned 6.95% annualised and 14.92% each year since inception, which is when the Russell International Shares 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 Shares Hedged A first started, the Sharpe ratio is NA with an annualised volatility of 14.92%. The maximum drawdown of the investment product in the last 12 months is -7.35% and -54.37% 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 Shares Hedged A has a 12-month excess return when compared to the Foreign Equity - Currency Hedged Index of 2.14% and -0.51% 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 Shares Hedged A has produced Alpha over the Foreign Equity - Currency Hedged Index of NA% in the last 12 months and NA% 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 International Shares Hedged A provide?

Russell International Shares Hedged A has a correlation coefficient of 0.99 and a beta of 1 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 International Shares Hedged A and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Russell International Shares Hedged A with the Developed -World Index?

For a full quantitative report on Russell International Shares Hedged A compared to the Developed -World Index, you can click here.

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

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

Has the Russell International Shares 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 Shares Hedged A?

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

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

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

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Russell International Shares 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 Shares Fund (AUD hedged) outperformed the benchmark in August. However, the Fund did deliver negative absolute returns for the month.

A material overweight to the strong-performing emerging markets space contributed positively to performance over the period. Stock selection within the sector also added value, including an overweight to Argentine e-commerce platform MercadoLibre and short positions in China’s Tencent and Taiwan Semiconductor Manufacturing Co. Stock selection in Continental Europe added further value in August; notably overweights to Swiss bank UBS and Danish multinational pharmaceutical company Novo Nordisk A/S. Both stocks made very strong gains for the month. Novo Nordisk in particular climbed almost 20%, which saw it overtake French luxury group LVMH Moët Hennessy Louis Vuitton as Europe’s most valuable company. Other notable positions to add value were underweights to Japan’s Sony Group and UK pharmaceutical firm AstraZeneca. In contrast, stock selection in the US detracted from overall performance in August, including underweights to strong-performing names like Eli Lilly & Co., chip maker NVIDIA and e-commerce platform Amazon.com. Other US positions to impact returns were overweights to Meta Platforms (formerly Facebook) and Microsoft. Stock selection in Australia also weighed on performance over the period, albeit modestly. This included overweights to Telstra and national carrier Qantas. Other key holdings to impact returns were overweights to Japanese electronics company Keyence Corp. and German car makers Bayerische Motoren Werke AG (BMW) and Mercedes-Benz Group A/G.

Performance Commentary - July 31, 2023

The Russell Investments International Shares 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. (TSMC), which fell after management said it expected sales to decline this year amid waning demand. TSMC is the world’s largest manufacturer of computer chips. Other emerging markets positions to impact returns were ex-benchmark holdings in India’s HDFC Bank and South Korea’s Samsung Electronics. Stock selection in Japan also weighed on performance in July, albeit modestly. This included overweights to electronics company Keyence Corp. and telco KDDI Corp. Other notable positions to impact returns were an overweight to Danish transport and logistics group DSV A/S and Swedish audio streaming platform Spotify. In contrast, the Fund benefited from stock selection in the US. This included an underweight to Apple and overweights to Uber Technologies, Meta Platforms (formerly Facebook) and ratings agency MSCI, Inc. Stock selection in Continental Europe also added value in July; notably overweights to Swiss-French recruitment company The Adecco Group and Dutch bank ING Groep N.V. Stock selection in the UK added further value over the period, albeit slightly. This included overweights to Intercontinental Hotels Group and Standard Chartered. Other key holdings to contribute positively to performance were an exbenchmark exposure to Chinese shopping platform Meituan and Dutch semiconductor manufacturer ASML Holding N.V.

Performance Commentary - June 30, 2023

The Russell Investments International Shares Fund (AUD hedged) performed in line with the benchmark in the June quarter.

Stock selection in Continental Europe contributed positively to fund performance 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). All three stocks recorded strong, double-digit gains for the quarter. Stock selection in emerging markets also added value, including short positions in China’s Tencent Holdings and Alibaba Group. However, this was partly offset by our broader overweight to the region, with emerging markets underperforming their developed counterparts over the period. Stock selection in Canada added further value in the second quarter; notably an overweight to multinational ecommerce platform Shopify. In contrast, stock selection in the US detracted from overall performance. This included 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, pharmaceutical company Eli Lilly & Co. and semiconductor manufacturer Broadcom. Stock selection in Japan also weighed on returns; notably overweights to electronics company Keyence Corp. and Ono Pharmaceutical. Performance was further impacted by stock selection in the UK, including an overweight to drinks maker Diageo and an underweight HSBC Holdings.

Performance Commentary - May 31, 2023

The Russell Investments International Shares Fund (AUD hedged) narrowly outperformed the benchmark in May.

Stock selection in emerging markets contributed positively to performance over the period. This included ex-benchmark holdings in technology names like Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics; both of which posted very strong gains for the month. Other emerging markets exposures to add value were short positions in China’s Tencent Holdings and Brazilian iron ore major Vale S.A.

The Fund also benefited from stock selection in Canada; notably an overweight to ecommerce platform Shopify, which climbed almost 21% in May. At the sector level, stock selection was strongest within industrials. This included an overweight to Danish transport and logistics company DSV A/S and an underweight to French construction firm VINCI SA. In contrast, 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 for the month. Other US positions to impact returns were underweights to e-commerce giant Amazon.com and streaming platform Netflix. An overweight to Continental Europe also weighed on performance, albeit modestly. This included our holdings in Italian luxury fashion house Moncler S.p.A. and Swiss multinational food and drink company Nestlé S.A.

Performance Commentary - April 30, 2023

The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in April.

Contributing to the Fund’s outperformance was strong stock selection in the US; notably an underweight to electric car maker Tesla, which fell almost 20% in April. Other US positions to add value were overweights to Meta Platforms (formerly Facebook), AutoZone and HCA Healthcare. The Fund also benefited from positive stock selection in Continental Europe, including overweights to Swiss pharmaceutical company Novartis, French investment bank BNP Paribas SA and Dutch bank ING Groep NV. At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our positions in Tesla and AutoZone, this included a short position in China’s Alibaba Group and overweights to French luxury goods makers Hermès and LVMH Moët Hennessy Louis Vuitton.

Other notable positions to add value over the period were overweights to Italian luxury fashion house Moncler S.p.A. and Swiss food and beverage company Nestlé S.A. In contrast, stock selection in the UK detracted from overall performance in April, albeit modestly. This included underweights to AstraZeneca, HSBC Holdings and Prudential. An overweight to emerging markets also weighed on returns; though this was largely offset by positive stock selection within the space. In terms of sectors, stock selection amongst industrials impacted the most on performance; notably overweights to Uber Technologies and Danish transport and logistics company DSV A/S.

Performance Commentary - March 31, 2023

The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in the March quarter.

Contributing to the Fund’s outperformance was a material overweight to emerging markets; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and an overweight to Argentine e-commerce company MercadoLibre. Both stocks posted strong, double-digit gains for the quarter. An overweight to Continental Europe also added value. This included overweights to Danish transport company DSV A/S and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). Stock selection in the UK added further value over the period, including underweights to British America Tobacco and commodities giant Glencore.

Other notable positions to contribute positively to performance were an ex-benchmark holding in Swedish music streaming platform Spotify Technology SA and an overweight to Italian luxury fashion house Moncler S.p.A. In contrast, stock selection in the US detracted from overall performance. This included 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 Japan also weighed on performance; notably overweights to T&D Holdings, Dai-Ichi Life and Ono Pharmaceutical Co. Other key positions to impact returns were an overweight to Switzerland’s Roche Holding AG and a short position in Dutch semiconductor company ASML Holding NV.

Performance Commentary - February 28, 2023

The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in February.

Contributing to the Fund’s outperformance was an overweight exposure and strong stock selection within emerging markets; notably short positions in China’s Alibaba Group, Tencent Holdings and JD.com. All three stocks posted sharp declines for the month. Stock selection in Continental Europe also added value in February. This included overweights to Danish transport and logistics company DSV A/S and German car makers MercedesBenz Group AG and Bayerische Motoren Werke AG (BMW). At the sector level, stock selection was strongest amongst communication services. In addition to our short position in Tencent Holdings, this included an overweight to Meta Platforms (formerly Facebook) and an ex-benchmark exposure to Swedish music streaming service Spotify. In contrast, stock selection in the US detracted from overall performance. This included underweights to large growth names like Apple, NVIDIA Corp. and electric car maker Tesla; all of which posted strong gains for the month. Stock selection in Canada also weighed on returns; notably overweights to Shopify and Barrick Gold Corp. Performance was further impacted by stock selection in Asia Pacific ex Japan, albeit modestly. This included overweights to Singapore’s Grab Holdings and Hong Kong’s Link Real Estate Investment Trust. Other notable positions to impact returns were an overweight to US ratings agency Moody’s Corp. and an ex-benchmark holding in China’s Meituan.

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