September, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) narrowly underperformed the benchmark in the September quarter.
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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-6-1.pdfAugust, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in August.
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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-5-1.pdfJuly, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) 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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-12.pdfJune, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) 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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-4-3.pdfMay, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in May.
Stock selection in the US detracted from performance over the period; notably underweights to large cap names like NVIDIA Corp., Apple and electric car maker Tesla. All three stocks posted very strong gains in May. Other US positions to impact returns were underweights to e-commerce giant Amazon.com and streaming platform Netflix.
Stock selection in Japan also weighed on performance, albeit modestly. This included underweights to technology companies Tokyo Electron and Advantest Corp.; both of which recorded strong, double-digit gains for the month. Other key holdings to impact performance were overweights to UK telco Vodafone and Dutch multinational brewing company Heineken NV. In contrast, stock selection within emerging markets added value in May; notably technology names. This included an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and overweights to South Korea’s SK hynix and Samsung Electronics. Stock selection in Continental Europe also added value over the period, including an underweight to French oil major TotalEnergies SE and overweights to German car makers BMW and Mercedes-Benz. At the sector level, stock selection was strongest within financials; notably an overweight to UK private equity firm 3i Group. Other notable positions to add value in May were underweights to UK names Shell and British American Tobacco.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-2-3.pdfApril, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) narrowly outperformed the benchmark in April. Stock selection in the UK contributed positively to performance over the period; notably ex-benchmark holdings in stockbroker Numis Corp. and price comparison website Moneysupermarket.com. Both stocks recorded very strong gains in April. The Fund also benefited from positive stock selection in the US, including an underweight to electric car maker Tesla, which fell almost 20% over the period.
Other US positions to add value were overweights to Meta Platforms (formerly Facebook), AutoZone and HCA Healthcare. At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our positions in Tesla and AutoZone, this included short positions in China’s largest retailer JD.com and Japanese car maker Toyota Motor Corp. In contrast, an overweight exposure and poor stock selection within emerging markets detracted from overall performance in April; notably our holdings in Taiwanese names MediaTek and Taiwan Semiconductor Manufacturing Co. Stock selection in Continental Europe also weighed on returns.
This included underweights to German software company SAP SE and French names TotalEnergies SE and L'Oréal S.A. All three stocks posted strong gains for the month. In terms of sectors, stock selection within the information technology space impacted the most on performance, including an underweight to US heavyweight Apple. A material underweight to the energy sector also weighed on returns; notably underweights to oil majors Shell (UK) and Exxon Mobil (US).
File:March, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) 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:February, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in February.
Much of the Fund’s underperformance was driven by poor stock selection in the US; notably underweights to large growth names like Apple, NVIDIA Corp. and electric car maker Tesla. All three stocks posted strong gains for the month. Stock selection within emerging markets also weighed on returns, including an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and overweights to poor-performing Chinese names Geely Automobile and Country Garden Services; a residential property management service provider. Performance was further impacted by poor stock selection in Continental Europe, including an underweight to Danish pharmaceutical company Novo Nordisk A/S.
In contrast, the Fund benefited from positive stock selection in the UK; notably underweights to major miners Glencore and Rio Tinto (Plc). Both stocks fell sharply on the back of weakness across the broader commodities complex. Overweights to multinational advertising company WPP and Rolls-Royce Holdings also added value. An underweight exposure to Australia added further, albeit modest, value over the period; notably underweights to three of the country’s ‘Big Four’ banks: Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp. Other key holdings to add value were an overweight to German car maker Mercedes-Benz Group AG and a short position in China’s JD.com.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1-3.pdfJanuary, 2023
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in January. Contributing to the Fund’s outperformance was strong stock selection in emerging markets; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and overweights to China’s Alibaba Group and South Korea’s SK Hynix.
All three stocks recorded strong, double-digit gains for the month. Stock selection in the US also added value over the period. This included overweights to Micron Technology and ratings agency Moody’s Corp., as well as underweights to Microsoft and Warren Buffet’s Berkshire Hathaway. Stock selection in the UK and Continental Europe added further value in January; the latter including overweights to France’s BNP Paribas, the Netherlands’ ING Groep NV and German car maker Mercedes-Benz Group AG.
Other notable positions to contribute positively to performance were an underweight to UK pharmaceutical company AstraZeneca and an overweight to French luxury goods maker LVMH Moët Hennessy Louis Vuitton. In contrast, stock selection in Japan detracted from overall fund performance. This included overweights to retailer Ryohin Keikaku and healthcare firm Nippon Shinyaku; both of which posted sharp declines in January. An underweight exposure to Australia also weighed on returns; notably underweights to leading financials such as Commonwealth Bank of Australia and Macquarie Group. Other key holdings to impact performance were overweights to large US growth names like electric car maker Tesla and graphic cards manufacturer NVIDIA Corp.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-11.pdfDecember, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) 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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-10.pdfNovember, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in November.
Much of the Fund’s outperformance was driven by strong stock selection in the US, including underweights to poor-performing growth names such as Apple, electric car maker Tesla and e-commerce giant Amazon.com. All three stocks posted sharp declines for the month. The Fund also benefited from an overweight exposure and positive stock selection in emerging markets; notably overweights to Taiwan Semiconductor Manufacturing Co. and China’s Pinduoduo. Stock selection in Japan added further value in November, including overweights to strong-performing names like Panasonic and Hitachi. Other notable positions to add value were overweights to UK names Anglo American PLC and Centrica PLC. In contrast, stock selection in Continental Europe detracted from overall performance, including overweights to Swiss pharmaceutical giant Roche Holding AG and Israel’s Bank Leumi. Stock selection within the financials space also weighed on returns; notably an underweight to Hong Kong’s AIA Group. Other key positions to impact performance were underweights to China’s Tencent Holdings and US technology firm NVIDIA Corp; both of which recorded strong, double-digit gains for the month. Meanwhile, the Fund’s active positioning strategy was flat in November. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-9.pdfOctober, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) narrowly outperformed the benchmark in October. Contributing to the Fund’s outperformance was stock selection in the UK. This included underweights to miner Rio Tinto PLC and multinational insurer Prudential; both of which significantly underperformed the broader market over the period. The Fund also benefited from stock selection in the US; notably underweights to poor-performing growth names such as Tesla and Amazon.com. Stock selection in emerging markets added further value in October, including underweights to Taiwan Semiconductor Manufacturing Co. and China’s Tencent Holdings. Other notable positions to add value were overweights to German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG; both of which posted very strong gains for the month.
Meanwhile, the Fund’s active positioning strategy outperformed in October. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Both value and quality outperformed growth over the period. In contrast, stock selection in Japan detracted from overall performance, including an underweight to Softbank Group and an overweight to Seiko Epson. Stock selection in Asia Pacific ex Japan and Continental Europe also weighed on returns; the latter including overweights to Dutch beer maker Heineken NV and Swiss food company Nestlé S.A. Other key holdings to impact performance were underweights to US oil majors Exxon Mobil and Chevron.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-8.pdfSeptember, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) 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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-7.pdfAugust, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in August. However, the Fund did deliver negative absolute returns for the month. Contributing to the Fund’s outperformance was positive stock selection in Continental Europe. This included overweights to French bank BNP Paribas and Israel’s Bank Leumi and Bank Hapoalim; all of which recorded good gains for the month.
The Fund also benefited from an overweight exposure to emerging markets, which outperformed their developed counterparts in August. Stock selection in Japan added further value over the period; notably overweights to car makers Suzuki and Subaru. Other notable positions to add value were an ex-benchmark holding in Brazilian oil major Petróleo Brasileiro S.A. and an overweight to China’s Pinduoduo, which jumped almost 50% for the month. Meanwhile, the Fund’s active positioning strategy outperformed in August.
The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value outperformed growth over the period, though this was partly offset by our quality bias. In contrast, poor stock selection in the UK detracted from overall performance, including underweights to oil giant Shell and cigarette maker British American Tobacco. Both stocks posted relatively good gains for the month. Stock selection in the US also weighed on returns; notably overweights to Micron Technology, Microsoft and ratings agency Moody’s Corp. Other key holdings to impact performance were an ex-benchmark exposure to Taiwan Semiconductor Manufacturing Co. and an underweight to China’s Tencent Holding.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-6.pdfJune, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) 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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-4-2.pdfMay, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in May.
Contributing to the Fund’s outperformance was strong stock selection in Japan. This included overweights to Seiko Epson and Hitachi; 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 consumer discretionary. 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 ex-benchmark holdings in Hong Kong’s Orient Overseas (International) Ltd. and Brazilian oil major Petróleo Brasileiro S.A. 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, stock selection in the UK had a slightly negative impact on performance, including underweights to British American Tobacco and Shell. Our broader underweight to the strong-performing energy sector also weighed on returns, including underweights to US names Exxon Mobil and Chevron. Other key holdings to impact performance were an overweight to Swiss pharmaceutical company Roche Holding AG and an underweight to Taiwan Semiconductor Manufacturing Co.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-3-2.pdfApril, 2022
The Russell Investments Global Opportunities 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 positive stock selection in Continental Europe. This included overweights to German car maker Mercedes Benz, Switzerland’s Nestle SA and Dutch brewer Heineken NV; all of which posted strong gains for the month. Stock selection in Japan also added value over the period; notably a short position in Sony, which fell almost 13% in April. At the sector level, stock selection was strongest within consumer discretionary, including underweights to US growth names Amazon.com and electric car maker Tesla. Other notable positions to add value were underweights to US names NVIDIA Corp. and Netflix, and an overweight to Canada’s Suncor Energy. Meanwhile, the Fund’s active positioning strategy outperformed in April. 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, poor stock selection in emerging markets detracted from overall performance. This included ex-benchmark holdings in Taiwan Semiconductor Manufacturing Co. and Brazilian iron ore major Vale S.A. Stock selection in the US also weighed on returns; notably our overweights to Google parent, Alphabet, and Microsoft. Other key holdings to impact performance were underweights to oil giant Exxon Mobil, Apple and The Coca-Cola Company
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-5.pdfMarch, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in the March quarter. However, the Fund did deliver negative absolute returns for the period.
Contributing to the Fund’s outperformance was a strong stock selection in the US, including underweights to streaming service Netflix, Home Depot, and PayPal. The Fund also benefited from positive stock selection within the materials space; notably overweighting to Canada’s First Quantum Minerals, Brazil’s Vale S.A., and the UK’s Anglo American. Other key positions to add value were overweights to Japan’s JGC Holdings Corp. and UK publisher Pearson. Our active positioning strategy added further value over the period. The strategy was positioned in favor of value and quality to complement our strategic factor positioning. Whilst quality underperformed in the first quarter, this was more than offset by our value exposure. In contrast, poor stock selection in the UK detracted from overall returns; notably underweights to AstraZeneca, miner Rio Tinto and HSBC Holdings; all of which recorded strong gains for the quarter.
At the sector level, stock selection was weakest within financials, including overweights to Dutch bank ING Group NV, France’s BNP Paribas, and US rating firm Moody’s. Other notable positions to impact performance over the period were an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and underweights to UK names Glencore and British American Tobacco. There were no material changes to either the Fund’s structure or manager lineup during the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-3-1.pdfFebruary, 2022
The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in February.
Contributing to the Fund’s underperformance was stock selection in emerging markets; notably ex-benchmark holdings in Russian names like Sberbank, Lukoil and Rosneft. All three stocks fell sharply in the wake of Russia’s invasion of Ukraine. Given Russian shares are currently unable to be traded, any remaining Russian holdings in the Fund have been written down to zero, meaning the Fund effectively has no exposure to the country. Stock selection in the UK also detracted from returns, including underweights to AstraZeneca and mining heavyweights Rio Tinto and Glencore. Both Rio Tinto and Glencore benefited from strong gains across the wider commodities complex. At the sector level, stock selection within the financials space weighed the most on performance; notably those names with a greater exposure to Russia’s economy. This included our holdings in the Netherlands’ ING Groep NV and France’s BNP Paribas. In contrast, the Fund benefited from strong stock selection in the US, including underweights to Apple, PayPal and Tesla. Other notable positions to add value were overweights to Canada’s First Quantum Minerals and an ex-benchmark holding in Brazilian miner Vale S.A. Meanwhile, the Fund’s active positioning strategy outperformed in February. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Whilst value outperformed growth over the period, this was partly offset by our quality bias.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-2-2.pdfDecember, 2021
The Russell Investments International Bond Fund (AUD hedged) underperformed the benchmark in the December quarter.
Interest rates positioning contributed to the Fund’s underperformance over the period; notably an overweight to US Treasuries and underweights to German bunds and UK gilts. In contrast, the Fund benefited from our long-held overweight to credit. This included overweights to US high-yield debt, non-agency collateralised mortgage obligations and non-agency commercial mortgage-backed securities. Our overweights to European, Latin American and African hard currency emerging markets debt also added value over the period. Meanwhile, active currency positioning had a relatively neutral impact on overall performance, with gains from short Swiss franc and Canadian dollar positions offset by long Chinese renminbi and South African rand exposures. In terms of strategic factor performance, our rates factor and currency factor strategies detracted from returns over the period, while our credit risk premium added value. Our term risk premium had no meaningful impact on overall performance in the fourth quarter
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_International_Bond_Fund_-_A_Hedged-Class_A-English-RetIntFI-AUD-1.pdfNovember, 2021
The Russell Investments Global Opportunities Fund underperformed the benchmark in November. Contributing to the Fund’s underperformance was poor stock selection in the UK, including overweights to Barclays and BP. Stock selection in Asia Pacific ex Japan also weighed on returns; notably overweights to Commonwealth Bank of Australia and National Australia Bank. Both stocks posted sharp declines for the month. Performance was further impacted by an underweight to the strong-performing information technology space and poor stock selection within financials, including an ex-benchmark holding in Sberbank Russia. Meanwhile, the Fund’s active positioning strategy underperformed in November. The strategy is currently 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 positive stock selection in the US, including overweights to Micron Technology and D.R. Horton. Stock selection within the consumer discretionary sector also added value over the period; notably a short position in China’s Alibaba Group. Moving forward, the Fund is underweight North America and Asia Pacific ex Japan. We also maintain overweight exposures to Continental Europe, Japan, the UK and emerging markets. In terms of sectors, the Fund is most overweight materials and communication services and most underweight information technology, consumer staples and utilities
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund-Class_A-English-RetIntEq-AUD.pdfOctober, 2021
The Russell Investments Global Opportunities 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 our overweight to Japan, which briefly fell into correction territory during the period. Poor stock selection in the US also weighed on performance; notably underweights to Tesla and Microsoft. Compounding this was our underweight to the US market. We maintain our preference for non-US equities over US equities on the basis that the US market remains overvalued relative to other regions. Performance was further impacted by poor stock selection in the UK and an overweight to emerging markets, which underperformed their developed peers over the period. Meanwhile, the Fund’s active positioning strategy underperformed in October. The strategy is currently 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 an underweight exposure and positive stock selection in Continental Europe, including an overweight to Germany’s Daimler AG. An underweight to Asia Pacific ex Japan also added value. In terms of overall positioning, we reduced our underweights to North America, Continental Europe and Asia Pacific ex Japan in October. We also reduced the Fund’s overweights to Japan and emerging markets, while our overweight to the UK was unchanged.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1-2.pdfSeptember, 2021
The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in the September quarter. Contributing to the Fund’s underperformance was poor stock selection in the US; notably underweights to information technology names like Microsoft and NVIDIA Corp. Stock selection within the broader technology space also weighed on returns, including an overweight to Taiwan Semiconductor Manufacturing Co. Performance was also impacted by weakness across the Fund’s emerging markets specialists, with Oaktree Capital and RWC Partners significantly underperforming their benchmarks over the period. Returns were further impacted by poor stock selection in Continental Europe, including an overweight to German carmaker BMW, as well as the underperformance of our active positioning strategy.
The strategy 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, good gains from our Japan equity specialist, Nissay Asset Management, contributed positively to overall performance; the manager benefiting from overweights to Seiko Epson and Panasonic. Stock selection in the UK was also positive for the quarter; notably an overweight to takeover target, Wm Morrison Supermarkets. Other key positions to add value over the period were underweights to China’s Tencent Holdings and Alibaba Group. 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_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-4.pdfJuly, 2021
The Russell Investments Global Opportunities Fund (AUD hedged) underperformed the benchmark in July. Contributing to the Fund’s underperformance was poor stock selection in Japan, including overweights to Toyo Tire and Fuji Electric. An overweight to emerging markets also weighed on returns; notably our holdings in Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics. At the sector level, stock selection within materials and industrials detracted from returns; the latter including an ex-benchmark holding in China’s JD Logistics. Other notable positions to impact performance were underweights to US technology giants Apple and Microsoft. Meanwhile, the Fund’s active positioning strategy underperformed in July. The strategy is currently 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 stock selection in the US, including overweights to Pfizer and MSCI. Stock selection in the UK also added value; notably an overweight to takeover target Morrisons. Other key holdings to contribute positively to performance in July were underweights to China’s Alibaba Group and Pinduoduo. In terms of overall positioning, we reduced our underweight to North America as well as our overweights to Continental Europe and the UK during the month. The Fund’s overweights to Japan and emerging markets and our underweight to Asia Pacific ex Japan were largely unchanged.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-2-1.pdfJune, 2021
The Russell Investments Global Opportunities Fund (AUD hedged) 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/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1-1.pdfMay, 2021
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in May.
Stock selection in the US accounted for much of the Fund’s outperformance; notably underweights to large growth names like Apple, Amazon.com and Microsoft. Stock selection in Japan was also positive, including ex-benchmark holdings in IHI Corp. and Round One. At the sector level, stock selection within the information technology space contributed the most to performance. In addition to our Apple and Microsoft positions, this included underweights to PayPal and Japan’s Seiko Epson Corp. 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. Both value and quality outperformed growth over the period. In contrast, poor stock selection in emerging markets detracted from overall returns; notably overweights to Taiwan’s MediaTek and Taiwan Semiconductor Manufacturing Co. Stock selection amongst US financials also weighed on performance, including underweights to Bank of America and Morgan Stanley. Returns were further impacted by poor stock selection within industrials, including an underweight to General Electric
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-3.pdfApril, 2021
The Russell Investments Global Opportunities Fund (AUD hedged) performed in line with the benchmark in April. The Fund benefited from positive stock selection in Canada; notably an overweight to First Quantum Minerals, which jumped almost 20% as copper prices hit their highest level in over a decade. Stock selection in China also added value, including underweights to Alibaba Group and Meituan. Stock selection within the materials, healthcare and communication services sectors added further value in April; the latter including underweights to Netflix and Walt Disney. In contrast, an overweight to Japan detracted from performance in April. Japanese stocks fell as a resurgence in the number of new coronavirus infections promoted the government to introduce fresh states of emergency in prefectures like Tokyo and Osaka.
Our long-held underweight to the US also weighed on returns after the market there hit fresh record highs. Meanwhile, the Fund’s active positioning strategy underperformed in April. The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Both value and quality underperformed growth over the period. In terms of overall positioning, we extended our underweights to North America and the UK and increased our overweight to Japan during the month. We also reduced our overweight to Asia Pacific ex Japan and shifted from overweight Continental Europe and emerging markets to modestly underweight.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD-1.pdfFebruary, 2021
The Russell Investments Global Opportunities Fund (AUD hedged) outperformed the benchmark in February. Contributing to the Fund’s outperformance were strong gains from our Japan equity specialist, Nissay, and UK equity specialist, J.O. Hambro. Nissay benefited from positive stock selection within the information technology sector, including an overweight to Hitachi, while J.O. Hambro’s outperformance was driven by strong stock selection amongst industrials. The Fund’s emerging markets specialists, RWC Partners and Oaktree Capital, also performed well in February; both managers benefiting from their underweight to China. Value manager Sanders also outperformed over the period as investors continued to rotate out of growth-oriented names in favour of more cyclical and cheaper value stocks. Meanwhile, the Fund’s active positioning strategy added value in February.
The strategy is currently positioned in favour of value and quality to complement our strategic factor positioning. Value stocks continued to perform well over the period; though this was partly offset by our quality exposure. In contrast, our longheld underweight to the US detracted from overall performance. However, this was more than offset by strong stock selection in the country. In terms of overall positioning, we reduced our overweights to Continental Europe, emerging markets and Asia Pacific ex Japan during the month. We also increased the Fund’s overweight to Japan, extended our underweight to the UK and reduced our underweight to North America.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Russell_Investments_Global_Opportunities_Fund_-_A_Hedged-Class_A-English-RetIntEq-AUD.pdfasset_class:
asset_category:
peer_benchmark:
broad_market_index:
manager_contact_details: Array
ticker: RIM0039AU
release_schedule: Monthly
structure: Managed Fund
commentary_block: Array
factsheet_url:
Factsheet
fund_features:
Russell Global Opportunities $A Hedged 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, largely hedged into Australian dollars.
- 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.
- Foreign currency exposures are largely hedged back to Australian dollars.