Russell Investments Conservative Fund is an investment option that invests in predominantly defensive assets. The Fund aims to provide your clients with stable returns over the long term. To provide returns over the short to medium term, with low volatility, consistent with a diversified mix of predominantly defensive assets and some growth oriented assets. The Fund typically invests in a diversified portfolio mix with exposure to growth investments of around 30% and defensive investments of around 70%. Derivatives may be used to implement investment strategies.
The Russell Investments Conservative Fund underperformed the benchmark in the September quarter.
Within the Fund’s traditional fixed income portfolio, the Russell Investments Australian Bond Fund (RABF) performed in line with its benchmark; though absolute returns were slightly negative. RABF benefited from a strategic overweight to credit, however this was offset by a slightly long duration exposure; positioning that was impacted by the sharp rise in bond yields we saw over the period. The Russell Investments International Bond Fund – $A Hedged delivered both negative absolute and excess returns for the quarter. In terms of our extended fixed income exposure, Metrics Credit outperformed traditional bonds over the period. The Russell Investments Australian Floating Rate Fund also performed well.
Within our global equity portfolio, the Russell Investments Multi-Asset Factor Exposure Fund recorded negative absolute and excess returns for the quarter, driven in part by its exposure to China and currency hedging positions. In contrast, the Russell Investments Tax Effective Global Shares Fund outperformed its benchmark, benefiting from stock selection in Japan and the UK. In terms of domestic equities, both the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund recorded negative absolute and excess returns in the third quarter; the two funds impacted by a material overweight to the poor-performing healthcare space. The Russell Investments Australian Factor Exposure Fund outperformed its benchmark; though absolute returns were negative. Elsewhere in the Fund, our exposures to global and Australian listed property weighed on overall performance.
What is Russell Investments Conservative Fund — Class A Russell Investments Conservative Fund — Class A is an Managed Funds investment product that is benchmarked against Multi-Asset Moderate Investor Index and sits inside the Multi-Asset - 21-40% Multi-Manager Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Russell Investments Conservative Fund — Class A has Assets Under Management of 761.94 M with a management fee of 0.62%, a performance fee of 0 and a buy/sell spread fee of 0.28%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Russell Investments Conservative Fund — Class A has returned 1.08% in the last month. The previous three years have returned 1.88% annualised and 4.37% each year since inception, which is when the Russell Investments Conservative Fund — Class A first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Russell Investments Conservative Fund — Class A first started, the Sharpe ratio is NA with an annualised volatility of 4.37%. The maximum drawdown of the investment product in the last 12 months is -1.93% and -14.3% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Russell Investments Conservative Fund — Class A has a 12-month excess return when compared to the Multi-Asset - 21-40% Multi-Manager Index of 0.14% and 0.1% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Russell Investments Conservative Fund — Class A has produced Alpha over the Multi-Asset - 21-40% Multi-Manager Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Multi-Asset - 21-40% Multi-Manager Index category, you can click here for the Peer Investment Report.
What level of diversification will Russell Investments Conservative Fund — Class A provide?
Russell Investments Conservative Fund — Class A has a correlation coefficient of 0.98 and a beta of 1.18 when compared to the Multi-Asset - 21-40% Multi-Manager Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Russell Investments Conservative Fund — Class A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Russell Investments Conservative Fund — Class A with the Multi-Asset Moderate Investor Index?
For a full quantitative report on Russell Investments Conservative Fund — Class A compared to the Multi-Asset Moderate Investor Index, you can click here.
Can I sort and compare the Russell Investments Conservative Fund — Class A to do my own analysis?
To sort and compare the Russell Investments Conservative Fund — Class A financial metrics, please refer to the table above.
Has the Russell Investments Conservative Fund — Class A been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Russell Investments Conservative Fund — Class A?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Russell Investments Conservative Fund — Class A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Russell Investments Conservative Fund narrowly underperformed the benchmark in August. The Fund’s 70% allocation to income assets such as Australian and global bonds and cash tends to drive returns.
Within the Fund’s traditional fixed income portfolio, the Russell Investments International Bond Fund – $A Hedged delivered both negative absolute and excess returns for the month, while the Russell Investments Australian Bond Fund outperformed its benchmark; benefiting in part from an overweight to credit. In terms of our extended fixed income exposure, Metrics Credit outperformed government bonds, with Australian loans continuing to generate income-like returns. Global floating rate credit and the Russell Investments Australian Floating Rate Fund also performed well in August. Our equity portfolio was mixed over the period. Within our global equity portfolio, the Russell Investments Tax Effective Global Shares Fund (TEGS) recorded positive absolute returns for the month; though excess returns were in line with its benchmark. TEGS benefited in part from stock selection in the UK; notably a short position in healthcare firm AstraZeneca. In contrast, both the Russell Investments Multi-Asset Factor Exposure Fund and the Russell Investments Global Opportunities Fund – $A Hedged delivered negative absolute and excess returns for the month. In terms of domestic equities, the Russell Investments Australian Shares Core Fund, the Russell Investments Australian Opportunities Fund and the Russell Investments Australian Factor Exposure Fund all recorded negative absolute returns in August. Meanwhile, the Fund benefited from its exposure to Australian listed property and a weaker Australian dollar (relative to the US dollar), which boosted the returns of the Fund’s assets denominated in foreign currency.
Performance Commentary - July 31, 2023 The Russell Investments Conservative Fund narrowly outperformed the benchmark in July. The Fund’s 70% allocation to income assets such as Australian and global bonds and cash tends to drive returns.
The Fund’s traditional fixed income portfolio performed well over the period, with the Russell Investments International Bond Fund – $A Hedged and the Russell Investments Australian Bond Fund delivering positive absolute and excess returns for the month. Both funds benefited from a long-held overweight to credit. In terms of our extended fixed income exposure, Metrics Credit outperformed government bonds in July, with Australian loans continuing to generate incomelike returns. Global floating rate credit and the Russell Investments Australian Floating Rate Fund also performed well. Within the Fund’s global equity portfolio, the Russell Investments Tax Effective Global Shares Fund (TEGS) and the Russell Investments Multi-Asset Factor Exposure Fund (MAFEF) delivered positive absolute and excess returns for the month. TEGS’ outperformance was driven in part by stock selection in the US, including overweights to Meta Platforms (formerly Facebook) and Uber Technologies, while MAFEF benefited from its value and growth factor exposures. In terms of domestic equities, the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund also recorded positive absolute and benchmark-relative returns in July. Both funds benefited from stock selection within the materials space, including an underweight to iron ore major Fortescue Metals Group. The Russell Investments Australian Factor Exposure Fund performed in line with its benchmark; though absolute returns were positive. Meanwhile, a weaker Australian dollar (relative to the US dollar) boosted the returns of the Fund’s assets denominated in foreign currency.
Performance Commentary - June 30, 2023 The Russell Investments Conservative Fund underperformed the benchmark in the June quarter. However, the Fund did deliver positive absolute returns over the period.
Within the Fund’s traditional fixed income portfolio, the Russell Investments Australian Bond Fund recorded negative absolute returns for the quarter; though it did outperform its benchmark, benefiting from an overweight to credit. The Russell Investments International Bond Fund – $A Hedged delivered negative absolute and benchmark-relative performance over the period. In terms of our extended fixed income exposure, Metrics Credit performed well, with Australian loans continuing to generate income-like returns. The Russell Investments Australian Floating Rate Fund and our exposure to global high-yield debt also added value. The Fund’s equity portfolio was mixed over the period. Within our global equity portfolio, both the Russell Investments Tax Effective Global Shares Fund (TEGS) and the Russell Investments Multi-Asset Factor Exposure Fund (MAFEF) recorded strong absolute returns for the quarter but underperformed their respective benchmarks. TEGS was impacted by stock selection amongst large US growth names, while MAFEF’s underperformance was driven by its value factor exposure. In terms of domestic equities, both the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund (RAOF) delivered positive absolute and excess returns for the quarter. The Core Fund benefited from stock selection within the strong-performing information technology space, while RAOF’s outperformance was driven in part by stock selection amongst materials. The Russell Investments Australian Factor Exposure Fund narrowly outperformed its benchmark, benefiting largely from its growth factor exposure. More broadly, the Fund benefited from its exposure to global and Australian listed property
Performance Commentary - May 31, 2023 The Russell Investments Conservative Fund performed in line with the benchmark in May. The Fund’s 70% allocation to income assets such as Australian and global bonds and cash tends to drive returns.
The Fund’s traditional fixed income portfolio was mixed over the period. The Russell Investments International Bond Fund – $A Hedged recorded both negative absolute and excess returns in May. The Russell Investments Australian Bond Fund also delivered negative absolute returns for the month, though it did perform in line with its benchmark; the Fund benefiting in part from an overweight to credit. In terms of our extended fixed income exposure, Metrics Credit performed well, with Australian loans continuing to generate income-like returns. The Russell Investments Australian Floating Rate Fund also outperformed. Within the Fund’s global equity portfolio, the Russell Investments Tax Effective Global Shares Fund delivered positive absolute returns for the month but underperformed its benchmark. Much of the Fund’s underperformance was driven by stock selection in the US; notably underweights to large cap names like NVIDIA Corp., Apple and Tesla. In contrast, the Russell Investments Multi-Asset Factor Exposure Fund recorded both negative absolute and excess returns in May. In terms of Australian equities, both the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund (RAOF) delivered negative absolute returns for the month but outperformed their benchmarks. The Core Fund’s outperformance was driven in part by an overweight to the information technology sector, while RAOF benefited from stock selection within the energy space. Meanwhile, a weaker Australian dollar boosted the returns of the Fund’s assets denominated in foreign currency.
Performance Commentary - April 30, 2023 The Russell Investments Conservative Fund performed in line with the benchmark in April. The Fund’s 70% allocation to income assets such as Australian and global bonds and cash tends to drive returns. The Fund’s traditional fixed income portfolio contributed positively to performance over the period.
The Russell Investments Australian Bond Fund delivered positive absolute and excess returns for the month, benefiting in part from its long-held overweight to credit. The Russell Investments International Bond Fund – $A Hedged was flat against its benchmark in April; though it did record positive absolute returns for the month. In terms of our extended fixed income exposure, Metrics Credit performed well over the period, with Australian loans continuing to generate income-like returns. The Russell Investments Australian Floating Rate Fund also outperformed. Within the Fund’s global equity portfolio, the Russell Investments Tax Effective Global Shares Fund delivered positive absolute and excess returns for the month, benefiting from strong stock selection in the UK.
This included ex-benchmark holdings in stockbroker Numis Corp. and price comparison website Moneysupermarket.com. In contrast, the Russell Investments Multi-Asset Factor Exposure Fund was flat for the month. In terms of Australian equities, the Russell Investments Australian Shares Core Fund was also flat in April, while the Russell Investments Australian Opportunities Fund (RAOF) recorded positive absolute and benchmark-relative returns over the period. RAOF’s outperformance was driven by strong stock selection within the materials sector; notably underweights to miners BHP Group and Fortescue Metals Group. Elsewhere in the Fund, our exposures to global and Australian listed property added value in April, while a weaker Australian dollar boosted the returns of the Fund’s assets denominated in foreign currency.
Performance Commentary - March 31, 2023 The Russell Investments Conservative Fund outperformed the benchmark in the March quarter. Within the Fund’s traditional fixed income portfolio, the Russell Investments Australian Bond Fund delivered positive absolute and excess returns over the period, benefiting from its duration positioning and an overweight to credit.
The Russell Investments International Bond Fund – $A Hedged recorded positive absolute returns for the quarter but narrowly underperformed its benchmark. In terms of our extended fixed income exposure, Metrics Credit performed well, with Australian loans continuing to generate income-like returns.
The Russell Investments Australian Floating Rate Fund and our exposure to global highyield debt also added value. The Fund’s equity portfolio was mixed over the period. Within our domestic equities portfolio, both the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund delivered positive absolute and excess returns for the quarter; benefiting from strong stock selection within the financials space.
In contrast, the Russell Investments Australian Factor Exposure Fund narrowly underperformed its benchmark, driven by its low-volatility, value and momentum factor exposures. In terms of global equities, both the Russell Investments Tax Effective Global Shares Fund (TEGS) and the Russell Investments Multi-Asset Factor Exposure Fund (MAFEF) underperformed their respective benchmarks over the period; though the two funds did record strong absolute returns.
TEGS was impacted by poor stock selection amongst large US growth names, while MAFEF’s underperformance was driven largely by its value factor exposure. More broadly, the Fund benefited from its exposure to global and Australian listed property.
Performance Commentary - February 28, 2023 The Russell Investments Conservative Fund performed in line with the benchmark in February. The Fund’s 70% allocation to income assets such as Australian and global bonds and cash tends to drive returns.
The Fund’s traditional fixed income portfolio was mixed over the period. The Russell Investments International Bond Fund – $A Hedged delivered negative absolute returns in February but narrowly outperformed its benchmark, while the Russell Investments Australian Bond Fund was flat for the month. In terms of our extended fixed income exposure, both Metrics Credit and the Russell Investments Australian Floating Rate Fund performed well over the period; the latter continuing to benefit from running yield in excess of the benchmark. The Fund’s equity portfolio was also mixed in February. Within our Australian equity portfolio, both the Russell Investments Australian Shares Core Fund and the Russell Investments Australian Opportunities Fund (RAOF) delivered positive excess returns for the month but underperformed their benchmarks. The Core Fund benefited from stock selection amongst financials, while RAOF’s outperformance was driven by stock selection within the materials space. In terms of global equities, the Russell Investments Tax Effective Global Shares Fund (TEGS) underperformed its benchmark in February; though it did record positive absolute returns for the month. TEGS was impacted by stock selection in the US; notably underweights to large growth names like Apple and Tesla.
The Russell Investments Multi-Asset Factor Exposure Fund also underperformed over the period. Elsewhere, our exposures to global and Australian listed property weighed on overall performance, while a weaker Australian dollar boosted the returns of the Fund’s assets denominated in foreign currency.
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