September, 2023
The Russell Investments Global Opportunities Fund performed in line with the benchmark in the September quarter. However, the Fund did deliver negative absolute returns over the period.
An overweight exposure and strong stock selection in Japan contributed positively to performance, including our holdings in retailer Ryohin Keikaku Co., Toyo Tire Corp. and car maker Suzuki Motor Corp. All three stocks posted strong, double-digit gains for the quarter. Stock selection in the UK also added value over the period; notably overweights to electric services company Centrica and multinational aerospace and defence firm RollsRoyce. A short position in insurer Prudential added further value after the stock fell more than 20% over the period. Other notable positions to add value were overweights to Canadian integrated energy company Suncor Energy and an ex-benchmark holding in Taiwanese semiconductor manufacturing company Alchip Technologies. In contrast, poor stock selection in the US detracted from overall performance, including underweights to chipmaker NVIDIA Corp., oil major Exxon Mobil and pharmaceutical company Eli Lilly & Co. Other US positions to impact returns were overweights to HCA Healthcare, Microsoft and medical device maker Insulet Corp. Stock selection in emerging markets also weighed on performance. This included our holdings in Chinese mining company Ganfeng Lithium Co. and South Korea’s Samsung Electronics. Performance was further impacted by stock selection in Continental Europe; notably overweights to French luxury goods maker LVMH Moët Hennessy Louis Vuitton SE, Swiss peer Cie Financiere Richemont SA and German car makers Mercedes-Benz AG and BMW.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-3-1.pdfAugust, 2023
The Russell Investments Global Opportunities Fund narrowly underperformed the benchmark in August. 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. This included underweights to strong-performing names like chip maker NVIDIA, e-commerce platform Amazon.com and pharmaceutical company Eli Lilly & Co. Other US positions to impact returns were overweights to Meta Platforms (formerly Facebook) and Microsoft. Stock selection in Continental Europe also weighed on performance in August; notably overweights to Swiss-based luxury goods maker Compagnie Financière Richemont SA and German car makers Bayerische Motoren Werke AG (BMW) and Mercedes-Benz Group A/G. Other key holdings to impact returns were ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and South African miner AngloGold Ashanti. Both stocks underperformed the broader market over the period. In contrast, the Fund benefited from strong stock selection in the UK; notably a short position in healthcare firm AstraZeneca and overweights to Rolls-Royce and energy provider Centrica. Stock selection in Japan also added value over the period. This included overweights to Toyo Tire Corp., Maruichi Steel Tube and pharmaceutical company Nippon Shinyaku Co. All three stocks recorded strong, double-digit gains for the month. Other notable positions to contribute positively to performance in August were overweights to Saudi Arabian Oil Co. and US names TJX Companies and Mastercard.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-8.pdfJuly, 2023
The Russell Investments Global Opportunities Fund underperformed the benchmark in July. However, the Fund did deliver positive absolute returns for the month.
Stock selection in emerging markets detracted from performance over the period; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co., which fell after management said it expected sales to decline this year amid waning demand. Other emerging markets positions to impact returns were underweights to South Korean steel maker POSCO Holdings and Chinese shopping platform Meituan. Stock selection in Continental Europe also weighed on performance in July, including overweights to Dutch multinational brewing company Heineken N.V. and German car makers Mercedes-Benz and BMW. Other notable positions to impact returns were an underweight to US chipmaker NIVIDA Corp. and an overweight to Japanese electronics company Keyence Corp. In contrast, the Fund benefited from stock selection in the UK; notably overweights to Centrica and Land Securities Group. Both stocks recorded very strong gains for the month. Stock selection in the US also added value in July. This included an underweight to Apple and overweights to Meta Platforms (formerly Facebook), Google parent Alphabet and ratings agency MSCI, Inc. Stock selection in Canada added further value over the period; particularly amongst the country’s large miners. This included overweights to First Quantum Minerals and Ivanhoe Mines. Other key holdings to contribute positively to performance were overweights to Japanese retailer Ryohin Keikaku Co. and US security systems services company Carrier Global.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-7.pdfJune, 2023
The Russell Investments Global Opportunities Fund underperformed the benchmark in the June quarter.
Contributing to the Fund’s underperformance was stock selection in the US, including underweights to large growth names like NVIDIA Corp., Apple and electric car maker Tesla; all of which posted very strong gains for the quarter. Other US positions to impact returns were underweights to e-commerce giant Amazon.com and semiconductor manufacturer Broadcom. Stock selection in Japan also weighed on performance; notably ex-benchmark holdings in retailer Ryohin Keikaku Co. and electronics company Casio Computer Co. Both stocks fell sharply over the period. Performance was further impacted by stock selection in Canada, albeit modestly. This included an overweight to integrated energy company Suncor Energy and an underweight to multinational e-commerce platform Shopify. In contrast, the Fund benefited from stock selection in the UK, including overweights to private equity firm 3i Group and multinational energy services and solutions company Centrica. An underweight to British American Tobacco also added value. Stock selection in Continental Europe added further value over the period; notably overweights to Dutch bank ING Groep N.V. and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). Stock selection in emerging markets also contributed positively to returns, though this was largely offset by our broader overweight to the region. Emerging markets underperformed their developed counterparts over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-2-1.pdfMarch, 2023
The Russell Investments Global Opportunities Fund underperformed the benchmark in the March quarter.
Contributing to the Fund’s underperformance was poor stock selection in the US, including 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 Continental Europe also weighed on performance; notably overweights to Switzerland’s Roche Holding AG and Dutch bank ING Groep NV. Performance was further impacted by poor stock selection in Japan, including an overweight to pharmaceutical company Nippon Shinyaku Co., which fell 21% over the period. Other notable positions to impact returns were overweights to US healthcare names The Cigna Group and UnitedHealth Corp. In contrast, the Fund benefited from strong stock selection in the UK. This included an overweight to private equity firm 3i Group as well as underweights to British American Tobacco and commodities giant Glencore. Stock selection in emerging markets also added value over the period; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and an overweight to China’s Alibaba Group. Other key holdings to add value were overweights to German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-6.pdfDecember, 2022
The Russell Investments Global Opportunities Fund outperformed the benchmark in the December quarter. Contributing to the Fund’s outperformance was strong stock selection in the US, including underweights to large growth names like electric car maker Tesla, Apple and ecommerce giant Amazon.com. All three stocks posted sharp, double-digit declines for the quarter. Stock selection in the UK also added value over the period; notably exbenchmark holdings in electric utility Centrica and ITV and an overweight to private equity firm 3i Group.
At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our positions in Tesla and Amazon.com, this included overweights to Japan’s Ryohin Keikaku and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). Other key holdings to add value were overweights to Dutch bank ING Groep NV and US names HCA Healthcare and TJX Companies. In contrast, stock selection in Continental Europe detracted from overall returns. This included an overweight to Swiss pharmaceutical company Roche Holding AG and an underweight to Danish healthcare firm Novo Nordisk A/S. Stock selection in Asia Pacific ex Japan also weighed on performance, albeit modestly. This included underweights to strong-performing Hong Kong-listed names such as AIA Group and Hong Kong Exchanges and Clearing. Other notable positions to impact returns over the period were underweights to Japan’s Mitsubishi UFJ Financial Group, UK miner Glencore and US oil major Exxon Mobil.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-5.pdfSeptember, 2022
The Russell Investments Global Opportunities Fund outperformed the benchmark in the September quarter. However, the Fund did deliver negative absolute returns for the period. Contributing to the Fund’s outperformance was positive stock selection in emerging markets, including overweights to Brazil’s Petróleo Brasileiro S.A. and India’s ICICI Bank; both of which posted very strong gains for the quarter. Stock selection in Asia Pacific ex Japan also added value; particularly in Hong Kong. This included underweights to AIA Group and Hong Kong Exchanges and Clearing Ltd. Stock selection within the healthcare space added further value over the period; notably overweights to US names Biogen and HCA Healthcare and an underweight to the UK’s AstraZeneca. Other key positions to add value were underweights to China’s Tencent Holdings and Japanese car maker Toyota.
In contrast, poor stock selection in the US detracted from overall returns. This included underweights to strong-performing growth names like Apple, Tesla and Amazon.com. Stock selection in the UK also weighed on performance; notably overweights to Vodafone and Land Securities Group. At the sector level, stock selection was weakest within information technology. In addition to our holding in Apple, this included overweights to Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics. Other notable positions to impact performance were an overweight to China’s Geely Automobile and an underweight to US oil giant Exxon Mobil. 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/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-3.pdfJune, 2022
The Russell Investments Global Opportunities Fund outperformed the benchmark in the June quarter. However, the Fund did deliver negative absolute returns for the period. Contributing to the Fund’s outperformance was strong stock selection in Japan, including overweights to used car dealer group USS Co., Yakult Honsha and car maker Subaru Corp.; all of which recorded very strong gains for the quarter.
The Fund also benefited from positive stock selection within the consumer discretionary space; notably underweights to poor-performing US names Tesla and Amazon.com. Both stocks posted sizable declines over the period. Other key positions to add value were overweights to fellow US stocks UnitedHealth Group and Cigna Corp. 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. Both value and quality outperformed in the second quarter. In contrast, poor stock selection in the US detracted from returns. This included overweights to Microsoft, Micron Technology and Google parent Alphabet.
At the sector level, stock selection was weakest within financials, including overweights to UK names Aviva and 3i Group. Other notable positions to impact performance over the period were an underweight to the UK’s AstraZeneca and an overweight to Canada’s First Quantum Minerals. In June, we removed Wellington Management Company (Wellington)’s Global Growth Horizon Equity strategy from the Fund’s manager line up and replaced it with Wellington’s Global Growth Equity strategy.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-2.pdfJune, 2021
The Russell Investments Global Opportunities Fund underperformed the benchmark in the June quarter.
Contributing to the Fund’s underperformance was poor stock selection in the US, including an underweight to NVIDIA Corp. and an overweight to Micron Technology. Our broader underweight to the US market also detracted from returns, albeit modestly. An overweight to emerging markets, which underperformed their developed counterparts over the period, also weighed modestly on performance. This included overweights to South Korea’s Samsung Electronics and China’s Ping An Insurance. Performance was further impacted by our active positioning strategy (APS).
Our APS was positioned in favour of value and quality to complement our strategic factor positioning. Value underperformed growth over the period, though this was partly offset by our quality exposure. In contrast, the Fund benefited from strong excess returns from our Japan equity specialist, Nissay Asset Management, and UK equity specialist, J.O. Hambro Capital Management. Stock selection within the communication services space was also positive for the quarter, including a short position in Japan’s Softbank Group and an underweight to China’s Tencent Holdings. Other notable positions to add value were overweights to Brazil’s Petroleo Brasileiro SA and US ratings agency Moody’s Corp. 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/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD-1.pdfDecember, 2020
The Russell Investments Global Opportunities Fund outperformed the benchmark in the December quarter. Much of the Fund’s outperformance was driven by strong gains from our emerging markets and UK equity specialists. Within the emerging markets space, both RWC Partners and Oaktree Capital benefited from strong stock selection in China, while the performance of UK equity specialist J O Hambro was driven by an overweight exposure and strong stock selection within the communication services sector.
Our active positioning strategy also added value. The strategy was positioned in favour of value and quality to complement our strategic factor positioning. Value outperformed growth on the back of more favourable fundamentals; though this was partly offset by our quality exposure. Value manager Sanders Capital also contributed to performance; the manager delivering strong excess returns on the back of positive stock selection within the information technology and financials sectors. Strong stock selection in Canada and an underweight to the US added further value over the period. In contrast, poor stock selection in Asia Pacific ex Japan detracted from returns; notably an ex-benchmark holding in Hong Kong-listed Alibaba Group.
An underweight to the strong-performing energy sector also weighed on performance, albeit modestly. 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/2021/02/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD.pdfasset_class: Foreign Equity
asset_category: Large Blend - Multi-Manager
peer_benchmark: Foreign Equity - Large Multi-Manager Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: RIM0032AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
fund_features:
Russell Global Opportunities A aims to significantly outperform the Fund’s benchmark, before costs and tax, over the long term by providing exposure to a diversified portfolio of predominantly international shares. The Fund invests predominantly in a broad range of international shares listed on stock exchanges in developed and emerging international markets. Derivatives may be used to obtain or reduce exposure to securities and markets, to implement investment strategies and to manage risk.
structure: Managed Fund