Russell Investments Portfolio Series – Balanced (RIM0024AU) Report & Performance

What is the Russell Investments Portfolio Series – Balanced fund?

Russell Investments Portfolio Series – Balanced aims to provide returns over the medium to long term, with moderate to high volatility, consistent with a diversified mix of predominantly growth oriented assets and some defensive assets. The Fund typically invests in a diversified portfolio mix with exposure to growth investments of around 70% and defensive investments of around 30%. Derivatives may be used to implement investment strategies.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Russell Investments Portfolio Series – Balanced

Russell Investments Portfolio Series – Balanced Fund Commentary August 31, 2023

The portfolio returned 0.01% in August. Positioning amongst the portfolio’s more defensive assets, including Metrics Credit, global floating rate credit and the Russell Investments Australian Floating Rate Fund, contributed positively to performance. The direct Australian equity portfolio also outperformed its benchmark. In contrast, our global equity portfolio recorded negative excess returns for the month. Exposure to emerging markets equities also weighed on returns.

The direct Australian equity portfolio outperformed its benchmark, benefiting from stock selection within the healthcare space. This included an overweight to Cochlear and an underweight to Ramsay Health Care. Stock selection within communication services also added value; notably an overweight to Carsales.com, which performed well on the back of better-than-expected earnings. Stock selection within consumer staples added further value over the period, particularly amongst the major grocery retailers. This included an overweight to Woolworths and an underweight to Coles. In terms of global equity managers, Sanders underperformed its benchmark, driven by poor stock selection within the healthcare and consumer discretionary sectors. Emerging markets specialist Oaktree Capital also underperformed. In contrast, Japan equity specialist Nissay Asset Management outperformed its benchmark, benefiting from strong stock picking within the consumer discretionary, information technology and industrials sectors. UK equity specialist JO Hambro also outperformed. There were no material positional changes in August. Overall, the managed portfolio is aligned with its long-term asset allocation as we wait patiently for opportunities.

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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 Investments Portfolio Series – BalancedRIM0024AUManaged FundsMulti-Asset61-80% Growth Assets - Multi-ManagerMulti-Asset - 61-80% Multi-Manager IndexMulti-Asset Growth Investor Index84.28 M0.75%00.35%

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 Investments Portfolio Series – Balanced1.08%1.06%9.74%3.72%6.43%8.27%9.3%8.62%-5.79%-13.15%-35.68%

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 Investments Portfolio Series – BalancedMulti-Asset - 61-80% Multi-Manager Index-1.08%0.17%NA%NA%NA%1.131.15%1.15%10.99

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Russell Investments Portfolio Series – BalancedYes-https://russellinvestments.com/au-

Product Due Diligence

What is Russell Investments Portfolio Series – Balanced

Russell Investments Portfolio Series – Balanced is an Managed Funds investment product that is benchmarked against Multi-Asset Growth Investor Index and sits inside the Multi-Asset - 61-80% 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 Investments Portfolio Series – Balanced has Assets Under Management of 84.28 M with a management fee of 0.75%, 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 Investments Portfolio Series – Balanced has returned 1.08% in the last month. The previous three years have returned 3.72% annualised and 8.62% each year since inception, which is when the Russell Investments Portfolio Series – Balanced 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 Investments Portfolio Series – Balanced first started, the Sharpe ratio is NA with an annualised volatility of 8.62%. The maximum drawdown of the investment product in the last 12 months is -5.79% and -35.68% 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 Investments Portfolio Series – Balanced has a 12-month excess return when compared to the Multi-Asset - 61-80% Multi-Manager Index of -1.08% and 0.17% 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 Investments Portfolio Series – Balanced has produced Alpha over the Multi-Asset - 61-80% Multi-Manager 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 Multi-Asset - 61-80% Multi-Manager Index category, you can click here for the Peer Investment Report.

What level of diversification will Russell Investments Portfolio Series – Balanced provide?

Russell Investments Portfolio Series – Balanced has a correlation coefficient of 0.99 and a beta of 1.13 when compared to the Multi-Asset - 61-80% 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 Investments Portfolio Series – Balanced and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Russell Investments Portfolio Series – Balanced with the Multi-Asset Growth Investor Index?

For a full quantitative report on Russell Investments Portfolio Series – Balanced compared to the Multi-Asset Growth Investor Index, you can click here.

Can I sort and compare the Russell Investments Portfolio Series – Balanced to do my own analysis?

To sort and compare the Russell Investments Portfolio Series – Balanced financial metrics, please refer to the table above.

Has the Russell Investments Portfolio Series – Balanced 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 Investments Portfolio Series – Balanced?

If you or your self managed super fund would like to invest in the Russell Investments Portfolio Series – Balanced please contact via phone or via email .

How do I get in contact with the Russell Investments Portfolio Series – Balanced?

If you would like to get in contact with the Russell Investments Portfolio Series – Balanced manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Russell Investments Portfolio Series – Balanced. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - March 31, 2023

The Portfolio typically invests in a diversified investment mix with exposure to growth investments of around 70% and defensive investments of around 30% over the long term, however the allocations will be actively managed within the allowable ranges depending on market conditions.’

Global share markets made strong gains over the period, driven largely by expectations the US Federal Reserve (Fed) would soon hit the pause button on interest rates amid increasing evidence inflation in the world’s biggest economy had peaked and renewed concerns over the US banking system. Headline inflation in the US continued to ease throughout January and February, suggesting inflation peaked at 9.1% in June last year. We also saw several US midsize banks collapse and Swiss banking giant UBS acquire troubled country peer Credit Suisse. Fears of a more systemic banking crisis, together with the ongoing moderation in inflation, led to increased speculation the Fed would leave interest rates on hold at its 21-22 March meeting; though the Bank ultimately disappointed investors by lifting the fed funds rate a further 0.25% to a target range of between 4.75% and 5.00%. Elsewhere, both the European Central Bank and the Bank of England raised interest rates twice over the period, as was widely expected. Australian shares underperformed their global counterparts; though the local market did record good gains for the quarter.

Performance Commentary - December 31, 2022

The direct Australian equity portfolio underperformed the benchmark. A modest underweight to the strong-performing utilities space detracted from returns. Stock selection within the materials and energy sectors also weighed on performance, including overweights to Ampol and James Hardie. Partly offsetting these positions was a nil exposure to Pilbara Minerals, which fell sharply over the period. Stock selection within the financials space also added value; notably an overweight to Suncorp Group.

Performance Commentary - September 30, 2022

During the month, we used derivatives to add some downside protection to the dynamic real return core strategy. Overall, the portfolio is aligned with its long-term asset allocation as we wait patiently for opportunities in this volatile environment. Global share markets fell in August. Stocks actually began the month well as investors adjusted their US rate hike expectations in the wake of better-thanexpected inflation data. However, comments from several US Federal Reserve (Fed) officials – all of whom reiterated the central bank’s determination to do what is necessary to control inflation – saw share markets reverse direction midway through the month. Stocks were also pressured by some surprisingly hawkish rhetoric from Fed chairman Jerome Powell, who reaffirmed his bank’s commitment to maintaining its current pace of rate hikes and cautioned against easing monetary conditions too early. Meanwhile, sharply higher inflation in the UK and Europe raised the prospect of even more aggressive rate hikes from the Bank of England and the European Central Bank. Stocks were also impacted by the ongoing uncertainty stemming from the war in Ukraine, heightened Sino-US frictions and fresh Chinese growth concerns. Australian shares rose as investors looked past yet another domestic rate hike and bet instead that the Reserve Bank of Australia may need to slow the pace at which it tightens monetary policy if growth slows too quickly. Government bonds were weaker, with longer-term yields rising amid expectations of further interest rate hikes globally.

Performance Commentary - June 30, 2022

The Portfolio typically invests in a diversified investment mix with exposure to growth investments of around 70% and defensive investments of around 30% over the long term, however the allocations will be actively managed within the allowable ranges depending on market conditions.

Global share markets fell sharply in the June quarter, driven by concerns that more aggressive central bank action in the face of persistently high inflation could derail the global recovery. In the US, consumer prices climbed a further 1.0% in May to be 8.6% higher for the year; the largest annual reading since December 1981. In response, the US Federal Reserve raised interest rates a further 0.75% midway through June. The move followed a 0.50% increase in early May and sparked fears that higher and faster rate hikes could tip the world’s largest economy (and potentially the global economy) into recession. Australian shares underperformed their global counterparts after the Reserve Bank of Australia raised interest rates in response to a further spike in inflation; the Bank lifting the official cash rate twice over the period to 0.85%.

Performance Commentary - June 30, 2021

Contributing positively to performance were strong absolute returns from our global equity portfolio, including the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Multi-Asset Factor Exposure Fund. However, both funds narrowly underperformed their benchmarks over the period.

This was due largely to their value exposure, as investors tended to favour quality and growth names over more cyclical, cheaper value stocks. It was a similar theme within our Australian equity portfolio, with the Russell Investments Australian Shares Core Fund, the Russell Investments Australian Opportunities Fund and the Russell Investments Australian Factor Exposure Fund all recording strong absolute returns for the quarter but underperforming their benchmarks. The Fund’s credit exposure also added value over the period, including global floating rate credit and global high-yield debt.

Our exposure to the Russell Investments Emerging Market Debt Local Currency Fund was also positive, as were our exposures to bank loans and securitised assets. Within our fixed income portfolio, both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund recorded positive absolute and excess returns for the quarter. The two funds benefited largely from their overweight to credit. An overweight to global listed property, which outperformed the broader global equity market over the period, added further value.

Performance Commentary - April 30, 2021

The Fund’s global and domestic fixed income portfolios contributed positively to performance, with the Russell Investments International Bond Fund (AUD Hedged) and the Russell Investments Australian Bond Fund recording positive absolute and benchmarkrelative returns for the month. Both funds benefited from their credit exposures.

Our overweight to extended fixed income assets also added value; notably our exposure to global floating rate credit, which outperformed amid improving investor sentiment and tighter credit spreads. Metrics Credit was also positive for the month. In contrast, our global and Australian equity portfolios were mixed in April. In terms of global equities, the Russell Investments Tax Effective Global Shares Fund (TEGS) recorded strong absolute returns over the period but underperformed its benchmark. TEGS was impacted in part by its pro-cyclical bias as investors tended to favour growth-oriented names over more cyclical, cheaper value stocks. The Russell Investments Multi-Asset Factor Exposure Fund and the Russell Investments Global Opportunities Fund (AUD Hedged) performed in line with their respective benchmarks in April; though, like TEGS, they did deliver strong absolute returns.

Performance Commentary - December 31, 2020

The Fund’s global and domestic equity portfolios contributed positively to performance over the period. In terms of global equities, both the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Global Opportunities Fund delivered positive excess returns for the quarter, driven by strong performances from their emerging markets and UK equity specialists. The Russell Investments Multi-Asset Factor Exposure Fund also performed well, benefiting largely from its value exposure. Within our Australian equity portfolio, both the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Factor Exposure Fund recorded strong absolute and benchmark relative returns over the period.

The Fund’s credit exposure was also positive for the quarter; notably global high-yield debt and floating rate credit, which recorded good gains as bank loans and securitised assets continued to recover. Credit positioning also contributed to positive excess returns for the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund. Also adding value over the period were our exposures to global and Australian listed property and an overweight to the Japanese yen. In contrast, a stronger Australian dollar impacted the returns of the Fund’s assets denominated in foreign currency.

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