September, 2023
The Russell Investments Australian Shares Fund narrowly underperformed the benchmark in the September quarter.
Contributing to the Fund’s underperformance was a material overweight to the poorperforming healthcare space. Stock selection within the sector also weighed on returns, including overweights to ResMed, New Zealand’s Fisher & Paykel Healthcare and CSL Ltd. All three stocks recorded sharp declines for the quarter. Performance was further impacted by an underweight exposure and stock selection within the energy space; notably underweights to Woodside Energy Group, Paladin Energy and coal miner New Hope. Other key holdings to impact returns over the period were an overweight to mobile payments company Block and underweights to Wesfarmers and Carsales.com. In contrast, the Fund benefited from stock selection amongst industrials. This included an underweight to Transurban Group, which fell 11% after the competition watchdog denied the company’s planned acquisition of the EastLink toll road in Melbourne. Stock selection amongst property trusts also added value over the period; notably an overweight to industrial property giant Goodman Group. An underweight exposure and stock selection within the consumer staples sector added further value, including underweights to major grocery retailers Coles and Woolworths. Other notable positions to contribute positively to performance were overweights to imaging IT provider Pro Medicus, gaming machine maker Aristocrat Leisure and Suncorp Group.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-15.pdfAugust, 2023
The Russell Investments Australian Shares Fund performed in line with the benchmark in August.
Stock selection within the information technology space contributed positively to performance over the period, including overweights to data centre operator NEXTDC and software companies Altium and Xero. All three stocks recorded good gains in August. The Fund also benefited from positive stock selection amongst property trusts; notably an overweight to industrial property giant Goodman Group, which climbed almost 14% on the back of an encouraging earnings update. Other property-related positions to add value were underweights to Abacus Storage King and Charter Hall Long WALE REIT, which leases high-quality property assets to corporate and government tenants on a long-term basis. Stock selection within industrials and materials added further value over the period, including an overweight to gold producer Perseus Mining. In contrast, stock selection within the healthcare space detracted from overall performance in August; notably overweights to poor-performing names like ResMed and New Zealand’s Fisher & Paykel Healthcare. Stock selection amongst financials also weighed on returns. This included overweights to Afterpay owner Block and QBE Insurance and an underweight to Macquarie Group. Performance was further impacted by stock selection within the consumer discretionary sector; notably an underweight to Wesfarmers, which gained 10.6% on the back of better-than-expected earnings. Other notable positions to impact returns were underweights to Carsales.com, Brambles and Woodside Energy Group.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-12.pdfJuly, 2023
The Russell Investments Australian Shares Fund outperformed the benchmark in July. Contributing to the Fund’s outperformance was stock selection within the materials space.
This included an underweight to iron ore major Fortescue Metals Group, which fell after management warned that inflationary pressures would lead to higher unit costs over the next 12 months. Other materials positions to add value were overweights to Sandfire Resources and BlueScope Steel. The Fund also benefited from stock selection within the consumer discretionary sector; notably an overweight to IDP Education, which climbed almost 13% over the period. Stock selection amongst industrials added further value in July, including underweights to toll road operator Transurban Group and supply-chain logistics firm Brambles. In contrast, stock selection within the information technology space detracted from overall performance. This included an underweight to internet connectivity business Megaport, which climbed almost 42% after management upgraded the company’s earnings guidance. A material overweight to the poor-performing healthcare sector also weighed on returns; notably an overweight to biotech company CSL Ltd. Performance was further impacted by stock selection amongst utilities, including an underweight to AGL Energy, which hit a 52-week high in July. Other notable positions to impact returns were underweights to Commonwealth Bank of Australia and Woodside Energy Group; both of which made strong gains for the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-5.pdfJune, 2023
The Russell Investments Australian Shares Fund performed in line with the benchmark in the June quarter.
Stock selection within the strong-performing information technology space contributed positively to performance over the period. This included overweights to Xero, WiseTech Global and NEXTDC; all of which posted double-digit gains for the quarter. Stock selection amongst financials also added value; notably material overweights to Suncorp Group and QBE Insurance. Stock selection within the industrials sector added further value over the period, including overweights to Aurizon Holdings, plumbing supplies group Reece Ltd. and engineering company Worley Ltd. Other notable positions to add value were underweights to Mineral Resources, Wesfarmers and New Zealand’s a2 Milk Company. In contrast, stock selection within the consumer discretionary space detracted from overall performance in the second quarter. This included overweights to poorperforming names like IDP Education, jewellery chain Lovisa and Premier Investments; owner of brands like Just Jeans, Smiggle and Peter Alexander. Stock selection within the materials sector also weighed on returns; notably an overweight to gold miner Perseus Mining, which fell almost 31% over the period, and underweights to Pilbara Minerals and James Hardie Industries. Other key holdings to impact performance were underweights to AGL Energy, which climbed more than 34% for the quarter, Insurance Australia Group and Commonwealth Bank of Australia.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-10.pdfMay, 2023
The Russell Investments Australian Shares Fund outperformed the benchmark in May.
Contributing to the Fund’s outperformance was an overweight to the information technology sector. This included overweights to Xero, WiseTech Global and NEXTDC; all of which recorded strong gains for the month. We have a material overweight to NEXTDC in particular; the stock, like the wider tech sector, benefiting from the artificial intelligence theme that drove strong gains across major technology names globally, including US software giant NVIDIA. Stock selection amongst industrials also added value in May; notably overweights to engineering firm Worley and rail transport company Aurizon. Stock selection amongst property trusts added further value over the period, including an overweight to industrial property giant Goodman Group. Other notable positions to add value were underweights to Wesfarmers and iron ore major Fortescue Metals Group. Both stocks fell sharply in May. In contrast, stock selection within the materials sector detracted from overall performance. This included an overweight to gold producer Perseus Mining, which fell almost 20% after the company withdrew staff from Sudan amid armed conflict in and around the country’s capital. Overweights to BlueScope Steel and Sandfire Resources also weighed on returns. Performance was further impacted by stock selection within the consumer discretionary space; notably an overweight to IDP Education. Other key holdings to impact returns were overweights to poor-performing names like Whitehaven Coal and Super Retail Group, owner of brands like Rebel and Supercheap Auto.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-8.pdfApril, 2023
The Russell Investments Australian Shares Fund performed in line with the benchmark in April.
Stock selection within the materials sector contributed positively to performance over the period, including underweights to major miners Fortescue Metals Group and BHP Group; both of which fell amid a build-up of iron ore inventories and concerns over Chinese demand. The Fund also benefited from stock selection within the healthcare space; notably an overweight to prostate cancer imaging business Telix Pharmaceuticals, which climbed almost 50% following a better-than-expected corporate update. Stock selection amongst financials added further value in April, including overweights to QBE Insurance, ANZ Group and National Australia Bank. Other key holdings to add value over the period were underweights to Mineral Resources and New Zealand’s a2 Milk Company. In contrast, stock selection within the industrials sector detracted from overall performance, including an underweight to toll road operator Transurban Group, which rose almost 6% after average daily traffic volumes increased sharply in the March quarter. Stock selection amongst property trusts also weighed on returns in April; notably underweights to strongperforming names like Stockland, Scentre Group and Mirvac Group. Our broader underweight to the sector further impacted performance, albeit modestly. Other notable positions to impact returns were an underweight to Wesfarmers and overweights to gold miner Perseus Mining and iron ore major Rio Tinto.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-6.pdfMarch, 2023
The Russell Investments Australian Shares Fund outperformed the benchmark in the March quarter.
Contributing to the Fund’s outperformance was strong stock selection within the financials space. This included material underweights to Commonwealth Bank of Australia and Westpac Banking Corp.; both of which significantly underperformed the broader market over the period. Stock selection within the information technology sector also added value in the first quarter; notably overweights to strong-performing names like Xero, WiseTech Global and Altium. Stock selection amongst consumer discretionary names also contributed positively to performance, including a sizable overweight to gaming machine maker Aristocrat Leisure; the stock jumping almost 22% over the period. Other notable positions to add value were overweights to plumbing supplies group Reece Ltd. and Viva Energy Group. In contrast, stock selection within the materials sector detracted from overall returns. This included an underweight to iron ore major Fortescue Metals Group and a nil exposure to lithium miner Liontown Resources, which almost doubled in price after US commodities giant Albemarle offered to buy the company. Stock selection within the consumer staples space also weighed on returns; notably underweights to Woolworths and Coles. Both stocks made strong gains over the period.
Our broader underweight to the consumer staples sector also impacted performance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-4-1.pdfFebruary, 2023
The Russell Investments Australian Shares Fund outperformed the benchmark in February.
Contributing to the Fund’s outperformance was strong stock selection amongst financials, including overweights to QBE Insurance and Suncorp Group and a material underweight to Commonwealth Bank of Australia (CBA). Both QBE and Suncorp rose on the back of positive earnings updates, while CBA, which hit a record high early in the period, fell on concerns the bank’s profit margin may have reached its peak given rising funding costs and the increasing risk of loan defaults. Stock selection within the consumer discretionary space also added value over the period; notably an overweight to gaming machine maker Aristocrat Leisure, which climbed 7.6% for the month. Other notable positions to add value in February were underweights to Domino’s Pizza and lithium producer Pilbara Minerals; both of which fell sharply over the period. In contrast, stock selection within materials detracted from overall performance, including overweights to IGO Ltd. and Evolution Mining. Stock selection amongst industrials also weighed on returns; notably an underweight to toll road operator Transurban Group, which rose after management announced record first-half earnings. Other key holdings to impact performance were underweights to Woolworths, Orica and Medibank Private.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-3-1.pdfJanuary, 2023
The Russell Investments Australian Shares Fund outperformed the benchmark in January.
Contributing to the Fund’s outperformance was strong stock selection amongst property trusts, including material overweights to industrial property giant Goodman Group and Charter Hall Group; both of which posted large, double-digit gains for the month. Stock selection within the consumer discretionary space also added value in January; notably overweights to strong-performing names like Aristocrat Leisure, IDP Education and ARB Corp. Other notable positions to add value were overweights to healthcare informatics company Pro Medicus and plumbing supplies group Reece Ltd. More broadly, the Fund benefited from an underweight to the utilities sector, which significantly underperformed the broader market over the period. In contrast, stock selection within the materials space detracted from overall performance in January. This included underweights to lithium producer Pilbara Minerals and iron ore major Fortescue Metals Group. Both stocks posted strong gains for the month. An overweight to the energy sector also weighed on returns; notably names like oil and gas producer Santos and engineering firm Worley Ltd. Other key holdings to impact performance were overweights to Aurizon, QBE Insurance and Suncorp Group.
We prefer more balanced exposures across both value and growth and have reduced our underweight positioning in low-volatility stocks. We recently reduced our overweight to value and added to our quality growth exposure.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-2-1.pdfNovember, 2022
The Russell Investments Australian Shares Fund underperformed the benchmark in November. However, the Fund did deliver positive absolute returns for the month.
Contributing to the Fund’s underperformance was poor stock selection within the consumer discretionary space, including overweights to gaming machine maker Aristocrat Leisure and Collins Foods, which operates Sizzler, KFC and Taco Bell in Australia. A sizable underweight to the strong-performing materials sector also weighed on returns; notably underweights to iron ore majors Fortescue Metals Group, Rio Tinto and BHP Group. Performance was further impacted by poor stock selection amongst consumer staples names, including an overweight to leading agribusiness company Elders, which fell almost 20% in November. Other notable positions to impact returns were overweights to ResMed, Australia and New Zealand Banking Group and oil and gas producer Santos. In contrast, the Fund benefited from strong stock selection with the property trusts sector, including an overweight to industrial property giant Goodman Group, which climbed almost 13% for the month. Stock selection amongst financials also added value in November; notably a material underweight to Commonwealth Bank of Australia. Other key holdings to add value were underweights to James Hardie Industries and Pilbara Minerals. Meanwhile, factor positioning had no material impact on overall performance.
We prefer more balanced exposures across both value and growth and have reduced our underweight positioning in low-volatility stocks. We recently reduced our overweight to value and added to our quality growth exposure.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-1-1.pdfOctober, 2022
The Russell Investments Australian Shares Fund narrowly outperformed the benchmark in October. Contributing to the Fund’s outperformance was positive stock selection amongst consumer-related names. This included material underweights to Woolworths and Coles and an overweight to gaming machine maker Aristocrat Leisure. Stock selection within the industrials space also added value over the period; notably overweights to strongperforming names like Qantas and Reece Ltd. Both stocks posted double-digit gains in October. Other notable positions to add value were underweights to major miners Fortescue Metals Group, Rio Tinto and BHP Group, and overweights to Suncorp Group and Australia and New Zealand Banking Group (ANZ). In contrast, an overweight exposure to the healthcare space detracted from performance; the sector significantly underperforming the broader market over the period. Stock selection within financials also weighed on returns, including underweights to Commonwealth Bank of Australia and Westpac Banking Corp.; both of which recorded very strong gains for the month. We still favour National Australia Bank and ANZ amongst the major banks on the basis that they offer better value. Other key holdings to impact performance were overweights to OZ Minerals, CSL Ltd. and Scentre Group. Meanwhile, factor positioning had no material impact on overall performance in October. We prefer more balanced exposures across both value and growth and have reduced our underweight positioning in low-volatility stocks. We recently reduced our overweight to value and added to our quality growth exposure.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-4.pdfSeptember, 2022
The Russell Investments Australian Shares Fund significantly outperformed the benchmark in the September quarter. Stock selection within the materials space contributed positively to performance over the period. This included an overweight to OZ Minerals, which climbed almost 46% on the back of an $8.3 billion takeover offer from mining heavyweight BHP Group. [Note: OZ Minerals’ board rejected the offer on the basis that it significantly undervalued the company.] Stock selection within industrials also added value; notably underweights to Transurban Group and Atlas Arteria.
Both stocks recorded steep declines for the quarter. The Fund’s exposure to several quality growth names added further value over the period, including overweights to ResMed and IDP Education. Other key holdings to contribute positively to returns were overweights to Allkem and IGO Ltd. and an overweight to Whitehaven Coal, which hit a series of record highs as Europe sought alternative energy supplies. In contrast, stock selection within financials detracted from overall performance, including overweights to QBE Insurance and Suncorp Group. Stock selection amongst property trusts also weighed on returns; notably an overweight to industrial property giant Goodman Group. Property trusts were generally weaker in the face of sharply higher bond yields. We prefer more balanced exposures across both value and growth and have reduced our underweight positioning in low-volatility stocks. We recently reduced our overweight to value and added to our quality growth exposure.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-3.pdfJuly, 2022
The Russell Investments Australian Shares Fund performed in line with the benchmark in July. Stock selection within the real estate space contributed positively to performance, including overweights to industrial property giant Goodman Group, Charter Hall Group and Ingenia Communities. All three stocks posted strong, double-digit gains for the month. Stock selection within the industrials sector also added value over the period; notably underweights to Transurban Group and toll road operator Atlas Arteria (formerly Macquarie Atlas Roads). Both stocks significantly underperformed the broader market in July. Other notable positions to add value were an underweight to mining heavyweight BHP Group and overweights to Pinnacle Investment Management and IDP Education. In contrast, poor stock selection within financials detracted from overall performance. This included a material overweight to QBE Insurance, which fell more than 5.0% after a review of the company’s practices revealed that, in some cases, it failed to deliver on its policy pricing promise. An overweight to fellow insurer Suncorp Group and an underweight to Commonwealth Bank of Australia also weighed on returns. Performance was further impacted by an overweight to the energy sector; notably names like oil and gas producer Santos and Worley Ltd. We prefer more balanced exposures across both value and growth and have reduced our underweight positioning in low-volatility stocks. We recently reduced our overweight to value and added to our quality growth exposure.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD-1.pdfDecember, 2020
The Russell Investments Australian Shares Fund outperformed the benchmark in the December quarter. Contributing to the Fund’s outperformance was our pro-cyclical bias, including an overweight to the energy sector and underweights to both consumer staples and utilities. The Fund’s value tilt was also positive as investors rotated out of expensive growth names in favour of value stocks amid encouraging vaccine developments.
Specifically, the Fund benefited from overweights to IGO Ltd., BlueScope Steel and Oz Minerals. Our growth exposure added further value over the period, as did our underweights to defensive stocks like Transurban Group and CSL Ltd. Other notable positions to add value were an overweight to NAB and underweights to ASX Ltd. and a2 Milk Company. In contrast, several stock-specific positions detracted from performance, including an underweight to Fortescue Metals Group and an overweight to QBE Insurance.
Our underweight to the broader banking space also weighed on returns; though this was more than offset by positive stock selection within the sector. We continue to favour cyclical exposures across both value and growth (with a preference for the former). Toward the end of the period, we added to the Fund’s cyclical positioning by reducing our exposure to expensive growth names in favour of value stocks. We also remain underweight momentum and low-volatility names.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Russell_Investments_Australian_Shares_Fund-Class_A-English-RetDomEq-AUD.pdfticker: RIM0006AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
Fund Factsheet
asset_class: Domestic Equity
asset_category: Australian Multi-Manager
peer_benchmark: Domestic Equity - Multi-Manager Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund
fund_features:
- The Fund invests predominantly in shares and unit trusts listed or about to be listed on the Australian Securities Exchange.
- Derivatives may be used to obtain or reduce exposure to securities and markets, to implement investment strategies and to manage risk.
manager_contact_details: Array