February, 2023
The Portfolio typically invests in a diversified investment mix with exposure to growth investments of around 30% and defensive investments of around 70% over the long term, however the allocations will be actively managed within the allowable ranges depending on market conditions.
Global share markets fell (in local currency terms) over the period, driven by expectations US interest rates will need to rise by more than previously thought following a surprisingly strong jobs report and disappointing inflation numbers. The US economy added over half a million jobs in January, while the latest headline inflation figures revealed only a modest easing in prices.
Compounding this was a jump in the Personal Consumption Expenditures Price Index – the Federal Reserve (Fed)’s preferred measure of inflation – which climbed 5.4% in the 12 months to 31 January. The Fed had raised interest rates by a smaller 0.25% margin early in the period amid increasing evidence inflation had peaked. However, the recent jobs and inflation figures suggested US interest rates would need to go higher (and likely remain there for longer). In fact, at month end the market was forecasting US interest rates to peak at 5.50% this year compared to market pricing of a 4.90% peak at the beginning of the period. Stocks were also impacted by a series of mixed corporate earnings and heightened Sino-US tensions. Australian shares also underperformed after the Reserve Bank of Australia raised interest rates for a ninth consecutive month and warned that more rate hikes will be needed to tame inflation.
Government bonds weakened in February, with longer-term yields rising (prices falling) over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet-7.pdfJanuary, 2023
The portfolio returned 2.73%^ in January. Overweights to listed growth assets, i.e. Australian and global equities, contributed positively to performance. An overweight to extended fixed income assets also added value.
Defensive assets such as fixed income and cash have an allocation of 67% in the portfolio. A tilt toward credit further enhances the long-term return potential, but also increases the risk of losses. Credit spreads have widened, providing additional yield over Treasuries. Government bonds have recently begun to show signs of value across some markets and are now offering much higher yields than at the beginning of 2022.
The portfolio has a long-term asset allocation of 33% to return generating assets (including high yield debt and other extended fixed income). Growth asset valuations have decreased significantly year to date but are marginally higher than long-term averages in the US and similar to long-term averages across other developed markets, such as Australia. Long term forward looking return expectations for US shares and high-yield debt have improved during the year, but the economic outlook creates uncertainty in the near term. Given this, growth assets are still preferred due to superior returns relative to defensive assets over the medium term.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet-6.pdfDecember, 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. Within the fixed income portfolio, the Russell Investments International Bond Fund – $A Hedged outperformed its benchmark, benefiting in part from its credit exposure.
The Russell Investments Floating Rate Fund and global high-yield debt also outperformed. The Russell Investments Australian Bond Fund recorded positive absolute and excess returns over the period. Metrics Credit also performed well, with Australian loans continuing to generate income-like returns. Looking ahead, we expect higher levels of volatility to continue, with active management to play an important role in navigating through it. We expect to increase growth asset exposure on major market reversals and decrease growth asset exposure on market rallies. This is a very important time to remain flexible as there are competing forces related to inflation and growth. We retain the same themes as recent months, i.e. a preference for emerging markets over developed markets and overweights to both global small caps and floating rate credit.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet-5.pdfNovember, 2022
The Portfolio typically invests in a diversified investment mix with exposure to growth investments of around 30% and defensive investments of around 70% over the long term, however the allocations will be actively managed within the allowable ranges depending on market conditions.
Global share markets made good gains in November, driven in part by hopes the US Federal Reserve (Fed) may soon pivot to smaller rate hikes amid speculation US inflation has peaked. The Fed raised interest rates by a further 0.75% early in the period after headline inflation jumped 8.2% in the 12 months to 30 September. However, subsequent data showed that headline inflation slowed to 7.7% in the 12 months to 31 October, which was the measure’s lowest reading since January and less than the 7.9% rise the market had anticipated. Compounding this were the minutes from the Fed’s November meeting, which revealed a substantial majority of participants judged that a slowing in the pace of rate increases would likely soon be appropriate. Stocks also benefited from preliminary data that showed consumer prices in the euro-zone slowed in the 12 months to 30 November, Beijing’s decision to begin walking back some of its COVID-19 prevention measures and easing Sino-US tensions. Australian shares also performed well, benefiting from the Reserve Bank of Australia (RBA)’s decision to continue raising rates by just 0.25%, easing inflation and strong gains across the major miners.
Global bonds outperformed in November amid softer US and European inflation figures and the asset class’s traditionally defensive qualities in the face of heightened geopolitical risks.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet-4.pdfOctober, 2022
The portfolio returned 2.21%^ in October. Overweights to listed growth assets, i.e. Australian and global equities, contributed positively to performance. An overweight to extended fixed income assets also added value.
Global share markets made strong gains in October even as the world’s major central banks continued to raise interest rates in the face of persistently high inflation. Investors were instead encouraged by speculation that officials may soon pivot toward a less aggressive monetary policy stance given the typical lag effects of higher interest rates and the potential impact that sharply higher rates will have on economic growth. Share markets also benefited from a series of positive US and European earnings updates, as well as speculation that stocks, which have sold off sharply so far this year, may have reached the bottom. Australian shares also performed well, driven largely by the Reserve Bank of Australia’s decision to cut interest rates by less than expected despite uncomfortably high inflation. Government bonds continued to underperform against a backdrop of rising interest rates.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet-3.pdfSeptember, 2022
During the quarter, we diversified listed real assets away from Australian listed property by selling the Vanguard Australian Property ETF and buying both the Vanguard International Property Fund and the Vanguard Global Infrastructure Fund. Further, we added emerging markets debt via the iShares J.P. Morgan USD Emerging Markets Bond ETF. We did this to gain exposure to a superior income and extended return source relative to global bonds. 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 local currency terms in the September quarter. Much of the decline was driven by further, aggressive central bank activity globally and growing recession fears. In the US, the Federal Reserve raised interest rates twice, with chairman Jerome Powell making it clear that interest rates will continue to rise until price stability is restored; even if it means tipping the world’s largest economy into recession. Elsewhere, rising consumer prices in the euro-zone saw the European Central Bank (ECB) deliver its first rate hike in 11 years in July; the Bank lifting its main refinancing rate by 0.50%.
The ECB followed this up with a further, unprecedented 0.75% increase in early September. Meanwhile, the Bank of England raised rates twice over the period and warned of steeper rate hikes ahead after UK inflation hit double figures in July. Stocks were also impacted by ongoing geopolitical risks and disappointing Chinese growth. Australian shares made modest gains despite the Reserve Bank of Australia raising interest rates three times over the period as it tries to curb rising inflation; investors betting instead that the Bank may need to slow the pace at which it tightens monetary policy if growth slows too quickly. Government bonds underperformed, with yields continuing to rise amid sharply higher interest rates globally.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet-2.pdfAugust, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet-1.pdfJuly, 2022
The portfolio returned 3.06% in July. A rebound in credit contributed positively to performance; notably global high-yield debt and floating rate credit. In contrast, stock selection within equities and an underweight to government bonds detracted from overall returns.
Toward the end of the month, we introduced a couple of new strategies to further diversify the portfolio. Specifically, we added global property and infrastructure to diversify away from our Australian property exposure. Overall, the portfolio is aligned with its long-term asset allocation as we wait patiently for opportunities in this volatile environment.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell-Investments-Managed-Portfolio-Conservative-Factsheet.pdfMarch, 2022
The Fund’s fixed income portfolio detracted from performance over the period, with both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund recording negative absolute and excess returns for the quarter. Our credit portfolio also weighed on performance as spreads widened amid a combination of global rate hike expectations and heightened geopolitical risks. However, global floating rate credit did outperform due to its low sensitivity to interest rates.
Within our global equity portfolio, the Russell Investments Tax Effective Global Shares Fund, the Russell Investments Multi-Asset Factor Exposure Fund and the Russell Investments Global Opportunities Fund – $A Hedged all posted sizable, negative absolute returns for the quarter.
In terms of domestic equities, the Russell Investments Australian Shares Core Fund underperformed its benchmark, though it did deliver positive absolute returns. The Russell Investments Australian Opportunities Fund recorded both positive absolute and excess returns over the period, while the Russell Investments Australian Factor Exposure Fund performed in line with its benchmark. Both funds benefited from their value factor exposure. Performance was further impacted by the Fund’s exposure to Australian listed property, which significantly underperformed the broader (domestic) equity market over the period. Meanwhile, in the currency space, a stronger Australian dollar impacted the returns of the Fund’s assets denominated in foreign currency.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-8.pdfFebruary, 2022
Contributing to the Fund’s underperformance was our traditional fixed income portfolio, with both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund recording negative absolute and benchmark-relative returns for the month.
The Fund’s exposure to global high-yield debt also weighed on returns in February; the sector underperforming amid global rate hike expectations and heightened geopolitical risks following Russia’s invasion of Ukraine. Within our global equity portfolio, the Russell Investments Tax Effective Global Shares Fund, the Russell Investments Multi-Asset Factor Exposure Fund and the Russell Investments Global Opportunities Fund all recorded negative absolute and excess returns for the month. Partly offsetting this were good gains across our Australian equity portfolio, with the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund posting positive absolute and benchmark-relative returns in February. Both funds benefited from underweight exposures to expensive quality growth names such as Sonic Healthcare and Domino’s Pizza. Elsewhere, our exposure to listed property was mixed, with the Vanguard Australian Property Securities Index Fund posting positive returns and the Vanguard International Property Securities Index Fund (Hedged) underperforming. Meanwhile, a stronger Australian dollar impacted the returns from our unhedged global exposures over the period
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-7.pdfJanuary, 2022
Within the Fund’s traditional fixed income portfolio, both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund recorded negative absolute returns for the month as government bond yields jumped on concerns that persistently high inflation will force major central banks to raise interest rates more aggressively than previously thought. Our exposure to global high-yield debt also weighed on returns in January; the sector underperforming amid heightened geopolitical risks and increasingly hawkish central bank commentary. Within our global equity portfolio, the Russell Investments Tax Effective Global Shares Fund, the Russell Investments Multi-Asset Factor Exposure Fund and the Russell Investments Global Opportunities Fund – $A Hedged all recorded negative absolute returns for the month; though they did outperform their respective benchmarks over the period. Similarly, the Russell Investments Australian Opportunities Fund and the Russell Investments Australian Factor Exposure Fund delivered negative absolute returns in January but outperformed their benchmarks. The Russell Investments Australian Shares Core Fund recorded both negative absolute and excess returns over the period. Elsewhere, our exposures to global and domestic listed property impacted overall performance; the asset class hindered by rate hike expectations, rising bond yields and the ongoing spread of Omicron. Meanwhile, a weaker Australian dollar boosted the returns from our unhedged global exposures.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-6.pdfDecember, 2021
The Fund’s credit portfolio contributed positively to performance over the period; notably our exposure to global floating rate credit. Our exposures to global and Australian listed property – both of which outperformed their broader equity market counterparts over the period – also added value. In contrast, the Fund’s equity portfolio was mixed for the quarter. Within our domestic equity portfolio, the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund performed largely in line with their benchmarks, while the Russell Investments Australian Factor Exposure Fund outperformed on the back of its momentum exposure. In terms of global equities, the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Global Opportunities Fund – $A Hedged recorded negative absolute returns for the quarter, whereas the Russell Investments Multi-Asset Factor Exposure Fund outperformed, benefiting from its tilts toward low-volatility and quality factors. Within our fixed income portfolio, both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund delivered negative absolute returns over the period; though the latter did outperform its benchmark, albeit modestly. Meanwhile, in the currency space, our overweight to the Japanese yen, which fell against the US dollar, weighed on overall performance in the fourth quarter. A stronger Australian dollar also impacted the returns of the Fund’s assets denominated in foreign currency.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-4.pdfNovember, 2021
Within our global equity portfolio, both the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Global Opportunities Fund – $A Hedged underperformed their benchmarks over the period; though the former did deliver strong absolute returns for the month. Meanwhile, the Russell Investments Multi-Asset Factor Exposure Fund recorded positive absolute and benchmark-relative returns for the month. In terms of domestic equities, the Russell Investments Australian Shares Core Fund, the Russell Investments Australian Opportunities Fund and the Russell Investments Australian Factor Exposure Fund all delivered negative absolute and excess returns in November; driven in part by their value exposures. The Fund’s traditional and extended fixed income portfolios were mostly positive for the month. Both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund recorded positive absolute returns in November as investors favoured the asset class’s ‘safe haven’ characteristics following the discovery of the new Omicron variant of coronavirus. Our exposures to global floating rate credit and Metrics Credit also added value over the period. Partly offsetting this was our exposure to global high-yield debt, which underperformed amid heightened virus fears. Elsewhere, the Fund benefited from its exposure to Australian listed property, which outperformed the broader equity market following the Reserve Bank of Australia’s decision to maintain its ultra-easy monetary policy settings and a sharp decline in long-term government bond yields.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-3-1.pdfOctober, 2021
The Fund’s equity portfolio delivered mixed performance over the period. In terms of global equities, the Russell Investments Tax Effective Global Shares Fund, the Russell Investments Global Opportunities Fund – $A Hedged and the Russell Investments MultiAsset Factor Exposure Fund all recorded positive absolute returns for the month, however
all three funds underperformed their respective benchmarks. Our Australian equity portfolio performed well in October, with the Russell Investments Australian Shares Core Fund, the Russell Investments Australian Opportunities Fund and the Russell Investments Australian Factor Exposure Fund all delivering positive absolute and excess returns for the month. The Fund’s exposures to Australian listed property and global listed infrastructure also added value in October; the latter performing well on the back of news the US House of Representatives had finally passed President Joe Biden’s US$1 trillion infrastructure bill. In contrast, our traditional and extended fixed income exposures detracted from overall performance. Both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund recorded negative absolute returns over the period as bond yields rose amid the prospect of central bank tapering and tighter monetary policy. Rising bond yields also weighed on the performance of the Fund’s global high-yield debt exposure. Partly offsetting this was a modest gain from Metrics Credit. Meanwhile, the Fund’s exposure to global floating rate credit had no material impact on overall returns in October
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-2-1.pdfSeptember, 2021
The Fund’s credit portfolio contributed positively to performance, including our exposures to global floating rate credit and global high-yield debt. Within our fixed income portfolio, the Russell Investments Australian Bond Fund recorded positive absolute and benchmark relative returns for the quarter, benefiting in part from the excess carry gained from its overweight to credit. Our exposure to the Russell Investments Australian Floating Rate Fund also added value, while the Russell Investments International Bond Fund – $A Hedged performed in line with its benchmark.
The Fund’s equity portfolio was mixed for the quarter. In terms of domestic equities, the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund delivered positive absolute and excess returns for the quarter. Both funds benefited from strong stock selection within the more cyclical parts of the market. The Russell Investments Australian Factor Exposure Fund also recorded positive absolute returns for the quarter, though it did underperform its benchmark. Within our global equity portfolio, the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Global Opportunities Fund – $A Hedged recorded positive absolute returns for the quarter but underperformed their respective benchmarks. Meanwhile, the Fund’s exposure to global listed property and our overweight to the Japanese yen detracted from overall performance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-3.pdfAugust, 2021
The Fund’s exposure to extended fixed income contributed positively to performance, including Metrics Credit and Australian and global floating rate credit. The Fund also benefited from its exposures to global listed infrastructure and global and Australian listed property; the latter benefiting from a modest decline in longer-term government bond yields and some encouraging earnings results within the sector. In contrast, our Australian and global equity portfolios were mixed in August. In terms of domestic equities, the Russell Investments Australian Shares Core Fund delivered positive absolute and excess returns for the month, benefiting from its pro-cyclical bias and strong stock selection within the materials space. The Russell Investments Australian Opportunities Fund and the Russell Investments Australian Factor Exposure Fund also recorded positive absolute returns, though the latter did underperform its benchmark. Within our global equity portfolio, both the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Global Opportunities Fund – $A Hedged underperformed their benchmarks over the period, while the Russell Investments Multi-Asset Factor Exposure Fund performed in line with its benchmark. In saying that, all three funds did record positive absolute returns for the month. Meanwhile, our exposure to traditional fixed income had a relatively neutral impact on overall returns, with both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund performing in line with their respective benchmarks over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-1-2.pdfJuly, 2021
The Fund’s fixed income portfolio drove performance over the period, with the Russell Investments International Bond Fund – $A Hedged (RIBF) in particular delivering positive absolute and benchmark-relative returns.
RIBF benefited in part from its exposure to US securitised assets as well as overweights to US Treasuries and Australian government bonds. The Russell Investments Australian Bond Fund also tracked its benchmark higher over the period. Our exposures to the Russell Investments Floating Rate Fund, the Russell Investments Australian Floating Rate Fund and Metrics Credit generated further, albeit modest, gains in July. The Fund also benefited from its exposures to the Vanguard International Property Securities Index Fund (Hedged) and the Russell Investments Global Listed Infrastructure Fund – Hedged; both of which posted good gains over the period. Meanwhile, the Fund’s equity portfolio was mixed in July. In terms of global equities, the Russell Investments Multi-Asset Factor Exposure Fund delivered positive absolute and excess returns for the month, while both the Russell Investments Global Opportunities Fund – $A Hedged and the Russell Investments Tax Effective Global Shares Fund underperformed, albeit modestly.
However, both funds did record positive absolute returns for the month. It was a similar theme within our Australian equity portfolio, with the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund delivering positive absolute returns but underperforming their benchmarks. In contrast, the Russell Investments Australian Factor Exposure Fund tracked its benchmark higher over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-2.pdfJune, 2021
The Fund’s fixed income portfolio contributed positively to performance, with both the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund recording positive absolute and excess returns for the quarter. The two funds benefited largely from their overweight to credit. Also adding value was our exposure to the Russell Investments Australian Floating Rate Fund, which performed well on the back of strong running yield and credit spread income.
An overweight to global listed property, which outperformed the broader global equity market over the period, added further value. Meanwhile, within our global equity portfolio, both the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Multi-Asset Factor Exposure Fund delivered strong absolute returns for the quarter. However, the two 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-1-1.pdfMay, 2021
The Fund’s fixed income portfolio contributed positively to performance, with both the Russell Investments International Bond Fund (AUD Hedged) and the Russell Investments Australian Bond Fund delivering positive absolute and benchmark-relative returns for the month. The two funds continued to benefit from their respective credit exposures. Our exposure to the Russell Investments Floating Rate Fund, Metrics Credit and the Russell Investments Australian Floating Rate Fund generated further gains in May as investor sentiment improved throughout the month. Our global equity portfolio also added value over the period, with the Russell Investments Tax Effective Global Shares Fund and the Russell Investments Multi-Asset Factor Exposure Fund recording strong absolute and benchmark-relative returns for the month. Both funds benefited from their value bias as value stocks outperformed their growth counterparts over the period.
Within our Australian equity portfolio, the Russell Investments Australian Factor Exposure Fund recorded positive absolute and benchmark-relative returns in May, driven largely by its value exposure. The Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund also posted positive absolute returns for the month, however both funds underperformed their benchmark.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD-1.pdfDecember, 2020
The Fund’s credit exposure contributed positively to performance; notably global highyield 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. Our exposure to the Russell Investments Australian Floating Rate Fund added further value over the period after it materially outperformed its benchmark.
The Fund’s global and domestic equity portfolios were also positive for the quarter. 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, 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 benchmarkrelative returns for the quarter. 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Portfolio_Series_-_Conservative_-_Class_A_AUD.pdfasset_class:
asset_category:
peer_benchmark:
broad_market_index:
manager_contact_details: Array
ticker: RIM0023AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
fund_features:
Russell Investments Portfolio Series – Conservative aims to provide returns over the short to medium term, with low volatility, consistent with a diversified mix of predominantly defensive assets and some growth oriented assets. To provide returns over the short to medium term, with low volatility, consistent with a diversified mix of predominantly defensive assets and some growth oriented assets. The Fund typically invests in a diversified portfolio mix with exposure to growth investments of around 30% and defensive investments of around 70%. Derivatives may be used to implement investment strategies.
structure: Managed Fund