September, 2023
The Russell Investments International Property Securities Fund (AUD Hedged) narrowly outperformed the benchmark in the September quarter. However, the Fund did deliver negative absolute returns over the period.
Contributing to the Fund’s outperformance was stock selection in the US, including overweights to strong-performing names like Welltower and Digital Realty Trust. Other US positions to add value were underweights to Extra Space Storage and Equinix. Stock selection in Australia also added value over the period; notably overweights to industrial property giant Goodman Group and Ingenia Communities Group. Stock selection amongst Japanese developers also contributed positively to performance, including an overweight to Mitsubishi Estate Company. In terms of strategic factor performance, our preferences for quality and size added further value over the period, while momentum, value and volatility factors had no meaningful impact on performance. In contrast, an underweight to the US office space detracted from overall returns. This included underweights to Vornado Realty Trust and Boston Properties; both of which recorded strong gains for the quarter.
Moving forward, the Fund is positioned with tilts toward the UK, Japan and Asia ex Japan, and away from North America, Continental Europe and emerging markets. We have a neutral exposure to Australia. In terms of sectors, we prefer data centre, residential and industrial names and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-6-2.pdfAugust, 2023
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in August. However, the Fund did deliver negative absolute returns for the month.
Much of the Fund’s outperformance was driven by strong stock selection in the US; notably overweights to Prologis, Welltower and Digital Realty Trust. Other US positions to contribute positively to performance were overweights to Equinix and Americold Realty Trust. The Fund also benefited from stock selection in Asia ex Japan, including overweights to Hong Kong-listed names CK Asset Holdings and Sun Hung Kai Properties. Stock selection in Japan added further value over the period; notably overweights to developers Mitsubishi Estate Co. and Mitsui Fudosan Co. In terms of strategic factor positioning, our tilts toward quality and size were positive for the month, while momentum, value and volatility factors had no meaningful impact on overall returns. In contrast, the Fund’s underweight to the US office space detracted from performance in August, albeit modestly. This included underweights to Boston Properties and Vornado Realty Trust; both of which outperformed the broader market over the period. Other notable positions to impact returns were underweights to Japan’s Hulic Co. and Australian developer Mirvac Group. Moving forward, the Fund is positioned with tilts toward the UK, Japan, Australia and Asia ex Japan, and away from North America and Continental Europe. In terms of sectors, we prefer data centres, residential and specialty and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-1-3.pdfJuly, 2023
The Russell Investments International Property Securities Fund (AUD hedged) underperformed the benchmark in July. However, the Fund did deliver positive absolute returns for the month.
Much of the Fund’s underperformance was driven by poor stock selection in the US; notably underweights to Alexandria Real Estate Equities, Prologis and Boston Properties. All three stocks posted strong gains for the month. Other US positions to impact performance were overweights to UDR, Welltower and Mid-America Apartment Communities. Our broader underweight to the strong-performing US office space also weighed on returns. In terms of strategic factor positioning, our tilt toward quality stocks impacted performance, while our size bias added value. Momentum, value and volatility factors had no meaningful impact on overall returns. In contrast, the Fund benefited from strong stock selection in Continental Europe. This included overweights to German names Vonovia SE, LEG Immobilien SE and TAG Immobilien AG. Overweights to Sweden’s Castellum AB and France’s Klépierre S.A. also added value. Other notable positions to contribute positively to performance over the period were underweights to US selfstorage names Extra Space Storage and CubeSmart.
Moving forward, the Fund is positioned with tilts toward the UK, Japan and Asia ex Japan and away from North America, Continental Europe and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-13.pdfJune, 2023
The Russell Investments International Property Securities Fund (AUD Hedged) outperformed the benchmark in the June quarter.
Stock selection in the US contributed positively to performance over the period, including overweights to strong-performing names like Welltower, Digital Realty Trust and Americold Realty Trust. An overweight to US data centres also added value; the sector performing well amid the optimism surrounding the artificial intelligence space. Stock selection in Continental Europe added further value over the period, including exbenchmark holdings in Germany’s TAG Immobilien AG and Vonovia SE. Both stocks posted strong gains for the quarter. In terms of strategic factor performance, our preferences for quality and size contributed positively to returns over the period, while momentum, value and volatility factors had no meaningful impact on overall performance.
In contrast, overweights to poor-performing regions like the UK and Asia ex Japan detracted from returns in the second quarter. Stock selection in Japan also weighed on performance; notably overweights to real estate investment trusts Japan Metropolitan Fund Investment Corp. and Nippon Prologis REIT.
Moving forward, the Fund is positioned with tilts toward the UK, Asia ex Japan and Australia, and away from North America, Continental Europe and Japan. In terms of sectors, we prefer residential, malls and technology names and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-4-2.pdfMay, 2023
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in May. However, the Fund did deliver negative absolute returns for the month.
Strong stock selection in the US contributed positively to performance over the period; notably underweights to poor-performing names like Prologis and Ventas. Other US positions to add value were overweights to Digital Realty Trust and Invitation Homes. The Fund also benefited from positive stock selection in Australia, including overweights to Charter Hall Group, Dexus and industrial property giant Goodman Group. In terms of strategic factor positioning, our tilts toward size and quality added value in May, while momentum, value and volatility factors had no meaningful impact on overall performance.
In contrast, stock selection in the UK detracted from returns in May. This included overweights to British Land Co. and self-storge companies Safestore and Big Yellow Group. All three stocks posted sharp declines for the month. Stock selection in Singapore also weighed on performance; notably an ex-benchmark holding in investment company CapitaLand.
Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan and away from North America, Continental Europe, Japan and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-3-2.pdfApril, 2023
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in April.
Strong stock selection in the US contributed positively to performance over the period; notably an overweight to Welltower, which climbed almost 11.0% for the month. Welltower invests in healthcare infrastructure. Other US positions to add value were underweights to poor-performing names like Extra Space Storage and industrial property giant Prologis.
The Fund also benefited from positive stock selection in Continental Europe, including an ex-benchmark holding in German residential company Vonovia SE; the stock jumping 16.3% in April. Our long-held underweight to the US office sector added further value over the period. In terms of strategic factor positioning, our tilts toward size and quality added value in April, while momentum, value and volatility factors had no meaningful impact on overall performance. In contrast, stock selection in Australia detracted from returns in April. This included underweights to Mirvac Group and shopping centre operators Vicinity Centres and Scentre Group.
All three stocks recorded strong gains for the month. Underweight exposures to the strong-performing Japanese developer and real estate investment trust sectors also weighed on performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan and away from North America, Continental Europe, Japan and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
File:March, 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.
File:February, 2023
The Russell Investments International Property Securities Fund (AUD hedged) performed in line with the benchmark in February.
An underweight exposure to the poor-performing US office space contributed positively to performance over the period; notably underweights to Alexandria Real Estate Equities and Boston Properties. Both stocks traded lower throughout the month. The Fund also benefited from positive stock selection amongst US healthcare names, including underweights to Medical Properties Trust and Welltower. An ex-benchmark exposure to Japanese developers added further value in February. In contrast, stock selection amongst Japanese real estate investment trusts detracted from overall performance; notably an overweight to MORI TRUST REIT. Other key holdings to impact performance were underweights to US storage names CubeSmart and Extra Space Storage. An overweight to the Hong Kong market also weighed on returns, though this was largely offset by strong stock selection within the country. In terms of strategic factor positioning, our tilt toward size added value in February, while our quality bias detracted from returns. Momentum, value and volatility factors had no meaningful impact on overall performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan and away from North America, Continental Europe and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-1-2.pdfJanuary, 2023
The Russell Investments International Property Securities Fund (AUD hedged) narrowly outperformed the benchmark in January. Contributing to the Fund’s outperformance was stock selection in Continental Europe, including an ex-benchmark holding in Spain’s Cellnex Telecom S.A., which jumped almost 14% on reports that American Tower REIT and Brookfield Asset Management were weighing a takeover bid for the company.
Stock selection in Australia also added value in January; notably ex-benchmark holdings in Charter Hall Group and industrial property giant Goodman Group. Other key holdings to add value were underweights to Japanese real estate investment trust Nippon Building Fund and US casino operator Gaming and Leisure Properties. In contrast, stock selection in the US detracted from overall returns, including underweights to strong-performing names like Prologis and Equinix.
Performance was further impacted by stock selection in Asia Pacific ex Japan; notably ex-benchmark holdings in Hong Kong’s Sun Hung Kai Properties and Wharf Real Estate Investment Co. In terms of strategic factor positioning, our tilt toward size added value in January, while our quality bias detracted from returns. Momentum, value and volatility factors had no meaningful impact on overall performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia Pacific ex Japan and away from North America and Continental Europe. In terms of sectors, we prefer residential, net lease and data centres and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-12.pdfDecember, 2022
The Russell Investments International Property Securities Fund (AUD Hedged) performed in line with the benchmark in the December quarter. A material underweight to the US office space contributed positively to performance, including a modest underweight to Boston Properties, which posted a sharp decline for the quarter. An overweight exposure and positive stock selection in the UK also added value over the period; notably overweights to British Land Co. and Safestore, the UK’s largest self-storage provider. Other notable positions to add value were ex-benchmark holdings in Hong Kong’s Sun Hung Kai Properties and Wharf Real Estate Investment Co. In contrast, stock selection amongst Japanese developers detracted from overall performance. This included ex-benchmark holdings in Mitsubishi Estate Co. and Mitsui Fudosan Co.; both of which significantly underperformed the broader market. Stock selection in Australia also weighed on returns, including an underweight to shopping centre operator Vicinity Centres. In terms of strategic factor performance, our quality tilt added value over the period while our size bias detracted from returns. Momentum, value and volatility factors had no meaningful impact on overall performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan, and away from North America, Continental Europe, Japan and Australia. In terms of sectors, we prefer residential, specialty and data centre names and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-11.pdfNovember, 2022
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in November.
Contributing to the Fund’s outperformance was strong stock selection in Australia, including overweights to industrial property giant Goodman Group and Charter Hall Group. Both stocks recorded good gains for the month. An overweight to the strongperforming Hong Kong market and positive stock selection in Singapore also added value in November; the latter including an overweight to CapitaLand Investment. Other notable positions to add value over the period were overweights to Hong Kong-listed names Sun Hung Kai Properties and Sands China. In contrast, poor stock selection in the US detracted from performance, including underweights to Prologis and Equinix. Stock selection in Canada also weighed on returns; notably overweights to Allied Properties REIT and apartment landlord Canadian Apartment Properties REIT. Performance was further impacted by poor stock selection amongst Japanese developers. In terms of strategic factor positioning, our tilts toward quality and size both detracted from returns, while momentum, value and volatility factors had no meaningful impact on overall performance.
Moving forward, the Fund is positioned with tilts toward the UK and Asia Pacific ex Japan and away from North America, Japan, Continental Europe and Australia. In terms of sectors, we prefer residential, data centres and storage and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-10.pdfOctober, 2022
The Russell Investments International Property Securities Fund (AUD hedged) underperformed the benchmark in October. However, the Fund did deliver positive absolute returns for the month. Contributing to the Fund’s underperformance was an overweight to Hong Kong, which significantly underperformed the broader market in October. Stock selection in Hong Kong also weighed on returns, including overweights to Link REIT and Sands China; both of which recorded sharp declines for the month. Performance was further impacted by an underweight to the US lodging space, including names like Gaming and Leisure Properties and Vici Properties. Other notable positions to impact returns were exbenchmark holdings in Duke Realty (US) and Singapore’s CapitaLand Investment.
In contrast, the Fund benefited from positive stock selection within the US industrials sector, including a material overweight to Prologis. Stock selection amongst US residential and shopping centre names also added value. In terms of strategic factor positioning, our tilts toward quality and size both added value over the period, while momentum, value and volatility factors had no meaningful impact on performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia Pacific ex Japan and away from North America, Japan, Continental Europe and Australia. In terms of sectors, we prefer residential, specialty and net lease and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-9.pdfSeptember, 2022
The Russell Investments International Property Securities Fund (AUD Hedged) underperformed the benchmark in the September quarter. Contributing to the Fund’s underperformance was an overweight exposure to the poorperforming UK market. Stock selection in the US also weighed on returns; particularly within the office space. This included an underweight to Alexandria Real Estate Equities and an overweight to Boston Properties. Performance was further impacted by stock selection in Continental Europe; notably overweights to Germany’s Vonovia SE and Belgium’s VGP NV; both of which posted steep declines for the quarter.
In contrast, the Fund benefited from strong stock selection in Hong Kong, including an ex-benchmark holding in Sands China. Stock selection in Japan also added value over the period; notably an ex-benchmark holding in MORI TRUST Hotel Reit. In terms of strategic factor performance, our quality tilt detracted from returns over the period while our size bias added value. Momentum, value and volatility factors had no meaningful impact on overall performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan, and away from North America, Continental Europe, Japan and Australia. In terms of sectors, we prefer residential, specialty and net lease names and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-8.pdfAugust, 2022
The Russell Investments International Property Securities Fund (AUD hedged) performed in line with the benchmark in August. Stock selection in Japan contributed positively to performance over the period. This included overweights to diversified names like Activia Properties and Tokyu Fudosan; both of which outperformed the broader market in August. The Fund also benefited from positive stock selection within the US specialty space, including an underweight to amusement park operator EPR Properties. A material underweight to the poor-performing office space added further value over the period. In contrast, poor stock selection in Continental Europe detracted from overall performance; notably an overweight to Germany’s Vonovia SE, which fell almost 17% in August.
An overweight to the UK also weighed on returns; the market there falling sharply after the Bank of England raised interest rates for the sixth time in as many meetings. In terms of strategic factor positioning, our tilts toward quality and size both detracted from returns over the period, while momentum, value and volatility factors had no meaningful impact on performance. Moving forward, the Fund is positioned with tilts toward the UK, Japan and Asia Pacific ex Japan and away from North America, Continental Europe and Australia. In terms of sectors, we prefer residential, net lease and industrial and maintain underweights to office, lodging and malls. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-6.pdfJuly, 2022
The Russell Investments International Property Securities Fund (AUD hedged) underperformed the benchmark in July. However, the Fund did deliver positive absolute returns for the month.
Contributing to the Fund’s underperformance was poor stock selection in the US; particularly within the office sector. This included a zero exposure to Alexandria Real Estate Equities and overweights to Boston Properties and Kilroy Realty Corp. Stock selection within the US healthcare space also weighed on returns; notably an overweight to Welltower. Performance was further impacted by an overweight to Hong Kong, which significantly underperformed the broader market in July. In terms of strategic factor positioning, our tilt toward quality detracted from returns over the period; though this was offset by our size bias. Momentum, value and volatility factors had no meaningful impact on overall performance. In contrast, stock selection amongst US industrials added value in July, including zero exposures to poor-performing names like Innovative Industrial Properties and Industrial Logistics Properties Trust.
Stock selection within the US shopping centre space also added value; notably overweights to Kite Realty Group Trust and Kimco Realty Corp.; both of which posted strong, double-digit gains for the month. Moving forward, the Fund is positioned with tilts toward the UK, Japan and Asia Pacific ex Japan and away from North America, Continental Europe and Australia. In terms of sectors, we prefer net lease, residential and healthcare and maintain underweights to office, lodging and malls. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-7.pdfJune, 2022
The Russell Investments International Property Securities Fund (AUD Hedged) underperformed the benchmark in the June quarter.
Contributing to the Fund’s underperformance was poor stock selection in Australia, including overweights to Charter Hall Group, Mirvac Group and industrial property giant Goodman Group. Stock selection in the US also weighed on returns; notably underweights to VICI Properties and American Campus Communities. At the sector level, stock selection was weakest within the US lodging space. In addition to our position in VICI Properties, this included overweights to Boyd Gaming Corp. and Host Hotels & Resorts. In contrast, the Fund benefited from an underweight to the poor-performing US office space,
including underweights to Alexandria Real Estate Equities and Vornado Realty Trust; both of which recorded steep declines for the quarter. Other notable positions to add value were an underweight to US industrial REIT Prologis and an ex-benchmark holding in leading Japanese developer Mitsui Fudosan. In terms of strategic factor performance, both our quality and size biases added value over the period. Momentum, value and volatility factors had no meaningful impact on overall performance.
Moving forward, the Fund is positioned with tilts toward the UK, Japan, Asia ex Japan and Australia, and away from North America and Continental Europe. In terms of sectors, we prefer healthcare, net lease and storage names and maintain underweights to office, malls and lodging. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-6-1.pdfMay, 2022
The Russell Investments International Shares Fund (AUD hedged) outperformed the benchmark in May.
Contributing to the Fund’s outperformance was strong stock selection in Continental Europe. This included overweights to French bank BNP Paribas and Dutch peer ING Groep NV; both of which posted strong gains for the month. Stock selection in the US also added value over the period; notably underweights to growth names like Apple and Tesla. At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our underweight to Tesla, this included overweights to German car makers BMW and Mercedes Benz. Other notable positions to add value were an overweight to Canada’s Suncor Energy and an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. Meanwhile, the Fund’s active positioning strategy outperformed in May.
The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value continued to outperform growth over the period, though this was partly offset by our quality bias. In contrast, an overweight to emerging markets (EM) detracted from overall performance; though this was largely offset by positive stock selection within the EM space. An underweight to the strong-performing energy sector also weighed on returns, including underweights to US names Exxon Mobil, Chevron and ConocoPhillips. Other key holdings to impact performance to were overweights to Uber (US) and Swiss pharmaceutical company Roche Holding AG.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-8.pdfApril, 2022
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in April. However, the Fund did deliver negative absolute returns for the month.
Contributing to the Fund’s outperformance was a strong stock selection in the US; particularly within the healthcare sector. This included underweights to Medical Properties Trust and Sabra Health Care REIT. Stock selection amongst US shopping centers also added value; notably an overweight to Kimco Realty Corp. Underweight exposure to the poor-performing US office space added further value in April, including underweight to Vornado Realty Trust, which posted double-digit declines for the month. In terms of strategic factor positioning, our tilts toward quality and size both contributed positively to returns over the period, while momentum, value, and volatility had no meaningful impact on overall performance.
In contrast, being underweight to the US lodging space detracted from returns; the sector performing well amid an increase in travel demand. Stock selection amongst US residential names also weighed on performance, including a zero exposure to American Campus Communities. Other notable positions to impact returns were overweighted to Germany’s Vonovia SE and Sweden’s Fastighets AB Balder.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-5-1.pdfFebruary, 2022
The Russell Investments International Property Securities Fund (AUD hedged) underperformed the benchmark in February. Contributing to the Fund’s underperformance was poor stock selection in the US; notably amongst healthcare names.
This included overweights to Healthpeak Properties and Medical Properties Trust. Both stocks posted double-digit declines for the month. A material underweight to the US office space also weighed on returns, with the sector outperforming the broader market in February. Performance was further impacted by stock selection in Continental Europe, including an overweight to Germany’s Vonovia SE and an ex-benchmark holding in Belgium’s VGP Group. In terms of strategic factor positioning, our tilts toward quality and size detracted from returns over the period, while momentum, value and volatility had no meaningful impact on overall performance. In contrast, the Fund benefited from strong stock selection amongst Japanese developers; notably an overweight to Mitsui Fudosan Co. Stock selection amongst Japanese real estate investment trusts also added value in February, including an ex-benchmark holding in MORI TRUST Hotel Reit. Other notable positions to add value were ex-benchmark holdings in Singapore’s CapitaLand and US gaming and hospitality company Boyd Gaming.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-4.pdfJanuary, 2022
The Russell Investments International Property Securities Fund (AUD hedged) underperformed the benchmark in January. Contributing to the Fund’s underperformance was poor stock selection in Australia, including overweights to Charter Hall Group and Mirvac Group; both of which recorded steep declines for the month. An overweight to Sweden also weighed on returns; notably our holdings in Castellum AB and Fabege AB.
In terms of strategic factor positioning, our tilt toward size detracted from returns over the period, while our quality bias added value. Momentum, value and volatility had no meaningful impact on overall performance. In contrast, the Fund benefited from strong stock selection in the US; notably underweights to Equinix and Prologis. Stock selection in Japan was also positive in January, including overweights to leading developers such as Mitsui Fudosan and Mitsubishi Estate Co. Overweights to Germany and France added further value over the period; the latter including our holding in mall operator, Klépierre. Other notable positions to contribute positively to performance were overweights to Germany’s Vonovia SE and Hong Kong’s CK Asset Holdings.
Moving forward, the Fund is positioned with tilts toward the UK, Australia and Asia Pacific ex Japan and away from North America and Continental Europe. In terms of sectors, we prefer malls and storage and maintain underweights to office, net lease and data centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-3-1.pdfDecember, 2021
The Russell Investments International Shares Fund (AUD hedged) underperformed the benchmark in the December quarter.
Contributing to the Fund’s underperformance was poor stock selection in the US; notably underweights to Apple, Tesla and NVIDIA Corp. Our long-held underweight to the US market also weighed on returns. We continue to favour non-US equities over US equities on the basis that the US market is overvalued relative to other regions. Performance was further impacted by an overweight exposure and poor stock selection in Japan, including overweights to Honda Motor and Japan Airlines. Other notable positions to impact returns were an ex-benchmark holding in India’s HDFC Bank and an overweight to German car maker Daimler AG. In contrast, the Fund benefited from positive stock selection in Asia Pacific ex Japan, including underweights to Hong Kong-listed AIA Group and Singapore’s Sea Ltd.
Stock selection within emerging markets also added value – notably short positions in Chinese mega-caps Alibaba Group and Tencent Holdings – though this was largely countered by our material overweight to the region. Our active positioning strategy added further value over the period. The strategy was positioned in favour of value and quality to complement our strategic factor positioning. Whilst value underperformed growth in the fourth quarter, this was more than offset by our quality exposure. There were no material changes to either the Fund’s structure or manager line up during the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Shares_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1-1.pdfOctober, 2021
The Russell Investments International Property Securities Fund (AUD hedged) narrowly underperformed the benchmark in October. However, the Fund did deliver strong absolute returns for the month.
Contributing to the Fund’s underperformance was an overweight exposure and poor stock selection in Australia; notably an overweight to Mirvac Group. Our overweight to Japan also weighed on returns, albeit modestly. This included overweights to diversified stocks like Activia Properties and Mitsui Fudosan. Other notable positions to impact performance were an ex-benchmark holding in Sweden’s AB Sagax and overweights to US names Welltower and Empire State Realty Trust. In terms of strategic factor positioning, our tilt toward size detracted from returns, while our quality bias added value. Momentum, value and volatility had no meaningful impact on overall performance in October. In contrast, the Fund benefited from positive stock selection in the US; notably self-storage and mall names. This included overweights to Extra Space Storage and Simon Property Group. Other key holdings to add value were an underweight to Germany’s Deutsche Wohnen SE and an overweight to Sweden’s Fastighets AB Balder. An underweight to Asia Pacific ex Japan added further value in October
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-3.pdfSeptember, 2021
The Russell Investments International Property Securities Fund (AUD Hedged) outperformed the benchmark in the September quarter. Contributing to the Fund’s outperformance was strong stock selection in the US; notably overweights to Simon Property Group and Jones Lang LaSalle. The Fund also benefited from positive stock selection in Japan. At the sector level, stock selection was strongest within the US healthcare space, including underweights to Omega Healthcare Investors and DigitalBridge Group.
Stock selection amongst US data centres also added value over the period. In terms of strategic factor performance, our overweight to size was positive for the quarter, while our quality bias detracted from returns. Momentum, value and volatility factors had no meaningful impact on overall performance. In contrast, stock selection in Hong Kong detracted from returns; notably overweights to Sands China and CK Asset Holdings. Poor stock selection in Continental Europe also weighed on performance, including an overweight to Germany’s Vonovia SE. Returns were further impacted by poor stock selection within the US office space. In terms of overall positioning, the Fund is tilted toward the UK, Japan and Australia and away from Continental Europe, North America and Asia Pacific ex Japan. At the sector level, the Fund favours specialty, residential and malls, while remaining underweight office and data centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-2.pdfJuly, 2021
The Russell Investments International Property Securities Fund (AUD hedged) performed in line with the benchmark in July.
Stock selection in the US contributed positively to performance; notably overweights to residential names such as Sun Communities and UDR. Also positive were overweights to self-storage names Life Storage and Extra Space Storage. An overweight to the UK also added value, including overweights to Safestore Holdings and Big Yellow Group; both of which posted double-digit gains for the month. Stock selection in Australia was also positive in July, including underweights to diversified heavyweights Stockland and Dexus. In terms of strategic factor positioning, our tilt toward quality added value over the period, while our size bias detracted from returns. Momentum, value and volatility had no meaningful impact on overall performance. In contrast, stock selection in Continental Europe detracted from returns, including an overweight to France’s Klepierre S.A. Stock selection in Asia Pacific ex Japan also weighed on performance; notably overweights to Hong Kong-listed names Sands China and CK Asset Holdings.
Moving forward, the Fund is positioned with tilts toward the UK and Australia and away from North America and Continental Europe. In terms of sectors, we prefer residential and self-storage, while maintaining underweights to office, net lease and data centres. We also maintain our strategic overweights to both quality and size
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-5.pdfJune, 2021
The Russell Investments International Property Securities Fund (AUD Hedged) outperformed the benchmark in the June quarter.
Contributing to the Fund’s outperformance was strong stock selection in Continental Europe, including an overweight to Deutsche Wohnen SE and Swedish names Castellum AB and Fabege AB. Stock selection in Australia was also positive, including overweights to Mirvac and Charter Hall Group. Our overweight to the strong-performing US selfstorage space added further value over the period, including our holding in Extra Space
Storage. In contrast, stock selection in Japan detracted from overall performance; notably an overweight to Mitsubishi Estate Co. An overweight to Asia Pacific ex Japan, which underperformed the broader market, also weighed on returns. Performance was further impacted by poor stock selection amongst US shopping centres, including an underweight to Federal Realty Investment Trust. In terms of strategic factor performance, our overweights to size and quality both detracted from returns, while momentum, value and volatility factors had no meaningful impact on overall performance. In terms of overall positioning, the Fund is tilted toward Australia and the UK and away from Continental Europe and North America. At the sector level, we favour residential, self-storage and lodging, while remaining underweight office and data centres. We also maintain strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-4-1.pdfMay, 2021
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in May. Stock selection in the UK contributed positively to fund performance, including overweights to Segro and self-storage company Safestore. Stock selection in Continental Europe was also positive; notably overweights to French names Unibail-RodamcoWestfield and Gecina SA. An overweight to Germany’s Deutsche Wohnen SE added further value over the period; the stock jumping in the wake of an EUR18 billion takeover offer from compatriot and rival Vonovia SE. At the sector level, the Fund benefited from positive stock selection amongst specialised REITs, including an underweight to US name Digital Realty Trust.
In terms of strategic factor positioning, our preferences for quality and size added value in May, while momentum, value and volatility had no meaningful impact on overall performance. In contrast, underweights to the US residential and office sectors detracted from returns; though the latter was partly offset by positive stock selection within the sector, including an overweight to SL Green Realty. Moving forward, the Fund is positioned with tilts toward the UK and Australia and away from North America and Continental Europe. In terms of sectors, we prefer lodging/resorts, residential and self-storage, while maintaining underweights to office, net lease and data centres. We also maintain our strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-1-1.pdfApril, 2021
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in April. Stock selection in the US drove the Fund’s outperformance, including overweights to VEREIT and Extra Space Storage. Stock selection in Continental Europe and Australia was also positive. At the sector level, stock selection was strongest within the diversified space. In addition to our holding in VEREIT, this included an overweight to Sweden’s Fastighets AB Balder. Other notable positions to add value were overweights to Germany’s Deutsche Wohnen SE and Alstria Office REIT.
In terms of strategic factor positioning, our preference for quality added value over the period, while our size bias weighed on returns. Momentum, value and volatility had no meaningful impact on performance. In contrast, an overweight to Japanese developers and poor stock selection amongst Japanese real estate investment trusts detracted from returns. Performance was also impacted by poor stock selection within the data centres space; notably an underweight to Digital Realty Trust.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD-1.pdfFebruary, 2021
The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in February. Contributing to the Fund’s out performance were our over weights to the US lodging/resorts and malls sectors; both of which performed well as investors favoured those stocks most tied to the ‘reopening’ theme. This included over weights to US names Park Hotels & Resorts and Simon Property Group. Stock selection amongst Japanese developers was also positive in February; notably an overweight to Mitsui Fudosan Co. Other notable positions to add value were over weights to US names Ventas and Extra Space Storage, and a zero exposure to Germany’s LEG Immobilien AG.
In terms of strategic factor positioning, our preferences for quality and size added value in February, while momentum, value and volatility had no meaningful impact on returns. In contrast, poor stock selection in Australia detracted from overall performance, including over weights to Charter Hall Group, Mirvac Group and industrial heavyweight Goodman Group. Moving forward, the Fund is positioned with tilts toward the UK and Japan and away from Continental Europe and North America. In terms of sectors, we prefer lodging/resorts, malls and self-storage, while maintaining underweights to office and data centres. We also maintain our strategic overweights to both quality and size.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Property_Securities_Fund_-_Hedged-Class_A-English-RetIntEq-AUD.pdfasset_class:
asset_category:
peer_benchmark:
broad_market_index:
manager_contact_details: Array
ticker: RIM0031AU
release_schedule: Monthly
structure: Managed Fund
commentary_block: Array
factsheet_url:
Fund Factsheet
fund_features:
Russell Intl Property Secs Hedged A aims 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 and Australian listed property securities, largely hedged into Australian dollars. The Fund invests predominantly in property trusts and property related securities listed on stock exchanges in developed international markets. The Fund may also invest in securities which have exposure to properties in emerging markets. Foreign currency exposures are largely hedged back to Australian dollars.