The Russell Investments Australian Shares Fund narrowly underperformed the benchmark in the September quarter.
Contributing to the Fund’s underperformance was a material overweight to the poorperforming healthcare space. Stock selection within the sector also weighed on returns, including overweights to ResMed, New Zealand’s Fisher & Paykel Healthcare and CSL Ltd. All three stocks recorded sharp declines for the quarter. Performance was further impacted by an underweight exposure and stock selection within the energy space; notably underweights to Woodside Energy Group, Paladin Energy and coal miner New Hope. Other key holdings to impact returns over the period were an overweight to mobile payments company Block and underweights to Wesfarmers and Carsales.com. In contrast, the Fund benefited from stock selection amongst industrials. This included an underweight to Transurban Group, which fell 11% after the competition watchdog denied the company’s planned acquisition of the EastLink toll road in Melbourne. Stock selection amongst property trusts also added value over the period; notably an overweight to industrial property giant Goodman Group. An underweight exposure and stock selection within the consumer staples sector added further value, including underweights to major grocery retailers Coles and Woolworths. Other notable positions to contribute positively to performance were overweights to imaging IT provider Pro Medicus, gaming machine maker Aristocrat Leisure and Suncorp Group.
What is Russell Australian Share A Russell Australian Share A is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - 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 Australian Share A has Assets Under Management of 253.77 M with a management fee of 0.75%, a performance fee of 0 and a buy/sell spread fee of 0.34%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Russell Australian Share A has returned 3.36% in the last month. The previous three years have returned 8.41% annualised and 13.48% each year since inception, which is when the Russell Australian Share 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 Australian Share A first started, the Sharpe ratio is NA with an annualised volatility of 13.48%. The maximum drawdown of the investment product in the last 12 months is -4.05% and -46.69% 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 Australian Share A has a 12-month excess return when compared to the Domestic Equity - Multi-Manager Index of 3.58% and -0.63% 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 Australian Share A has produced Alpha over the Domestic Equity - 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 Domestic Equity - Multi-Manager Index category, you can click here for the Peer Investment Report.
What level of diversification will Russell Australian Share A provide?
Russell Australian Share A has a correlation coefficient of 0.98 and a beta of 1.06 when compared to the Domestic Equity - 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 Australian Share A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Russell Australian Share A with the ASX Index 200 Index?
For a full quantitative report on Russell Australian Share A compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the Russell Australian Share A to do my own analysis?
To sort and compare the Russell Australian Share A financial metrics, please refer to the table above.
Has the Russell Australian Share 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 Australian Share A?
How do I get in contact with the Russell Australian Share A?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Russell Australian Share 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 Australian Shares Fund performed in line with the benchmark in August.
Stock selection within the information technology space contributed positively to performance over the period, including overweights to data centre operator NEXTDC and software companies Altium and Xero. All three stocks recorded good gains in August. The Fund also benefited from positive stock selection amongst property trusts; notably an overweight to industrial property giant Goodman Group, which climbed almost 14% on the back of an encouraging earnings update. Other property-related positions to add value were underweights to Abacus Storage King and Charter Hall Long WALE REIT, which leases high-quality property assets to corporate and government tenants on a long-term basis. Stock selection within industrials and materials added further value over the period, including an overweight to gold producer Perseus Mining. In contrast, stock selection within the healthcare space detracted from overall performance in August; notably overweights to poor-performing names like ResMed and New Zealand’s Fisher & Paykel Healthcare. Stock selection amongst financials also weighed on returns. This included overweights to Afterpay owner Block and QBE Insurance and an underweight to Macquarie Group. Performance was further impacted by stock selection within the consumer discretionary sector; notably an underweight to Wesfarmers, which gained 10.6% on the back of better-than-expected earnings. Other notable positions to impact returns were underweights to Carsales.com, Brambles and Woodside Energy Group.
Performance Commentary - July 31, 2023 The Russell Investments Australian Shares Fund outperformed the benchmark in July. Contributing to the Fund’s outperformance was stock selection within the materials space.
This included an underweight to iron ore major Fortescue Metals Group, which fell after management warned that inflationary pressures would lead to higher unit costs over the next 12 months. Other materials positions to add value were overweights to Sandfire Resources and BlueScope Steel. The Fund also benefited from stock selection within the consumer discretionary sector; notably an overweight to IDP Education, which climbed almost 13% over the period. Stock selection amongst industrials added further value in July, including underweights to toll road operator Transurban Group and supply-chain logistics firm Brambles. In contrast, stock selection within the information technology space detracted from overall performance. This included an underweight to internet connectivity business Megaport, which climbed almost 42% after management upgraded the company’s earnings guidance. A material overweight to the poor-performing healthcare sector also weighed on returns; notably an overweight to biotech company CSL Ltd. Performance was further impacted by stock selection amongst utilities, including an underweight to AGL Energy, which hit a 52-week high in July. Other notable positions to impact returns were underweights to Commonwealth Bank of Australia and Woodside Energy Group; both of which made strong gains for the month.
Performance Commentary - June 30, 2023 The Russell Investments Australian Shares Fund performed in line with the benchmark in the June quarter.
Stock selection within the strong-performing information technology space contributed positively to performance over the period. This included overweights to Xero, WiseTech Global and NEXTDC; all of which posted double-digit gains for the quarter. Stock selection amongst financials also added value; notably material overweights to Suncorp Group and QBE Insurance. Stock selection within the industrials sector added further value over the period, including overweights to Aurizon Holdings, plumbing supplies group Reece Ltd. and engineering company Worley Ltd. Other notable positions to add value were underweights to Mineral Resources, Wesfarmers and New Zealand’s a2 Milk Company. In contrast, stock selection within the consumer discretionary space detracted from overall performance in the second quarter. This included overweights to poorperforming names like IDP Education, jewellery chain Lovisa and Premier Investments; owner of brands like Just Jeans, Smiggle and Peter Alexander. Stock selection within the materials sector also weighed on returns; notably an overweight to gold miner Perseus Mining, which fell almost 31% over the period, and underweights to Pilbara Minerals and James Hardie Industries. Other key holdings to impact performance were underweights to AGL Energy, which climbed more than 34% for the quarter, Insurance Australia Group and Commonwealth Bank of Australia.
Performance Commentary - May 31, 2023 The Russell Investments Australian Shares Fund outperformed the benchmark in May.
Contributing to the Fund’s outperformance was an overweight to the information technology sector. This included overweights to Xero, WiseTech Global and NEXTDC; all of which recorded strong gains for the month. We have a material overweight to NEXTDC in particular; the stock, like the wider tech sector, benefiting from the artificial intelligence theme that drove strong gains across major technology names globally, including US software giant NVIDIA. Stock selection amongst industrials also added value in May; notably overweights to engineering firm Worley and rail transport company Aurizon. Stock selection amongst property trusts added further value over the period, including an overweight to industrial property giant Goodman Group. Other notable positions to add value were underweights to Wesfarmers and iron ore major Fortescue Metals Group. Both stocks fell sharply in May. In contrast, stock selection within the materials sector detracted from overall performance. This included an overweight to gold producer Perseus Mining, which fell almost 20% after the company withdrew staff from Sudan amid armed conflict in and around the country’s capital. Overweights to BlueScope Steel and Sandfire Resources also weighed on returns. Performance was further impacted by stock selection within the consumer discretionary space; notably an overweight to IDP Education. Other key holdings to impact returns were overweights to poor-performing names like Whitehaven Coal and Super Retail Group, owner of brands like Rebel and Supercheap Auto.
Performance Commentary - April 30, 2023 The Russell Investments Australian Shares Fund performed in line with the benchmark in April.
Stock selection within the materials sector contributed positively to performance over the period, including underweights to major miners Fortescue Metals Group and BHP Group; both of which fell amid a build-up of iron ore inventories and concerns over Chinese demand. The Fund also benefited from stock selection within the healthcare space; notably an overweight to prostate cancer imaging business Telix Pharmaceuticals, which climbed almost 50% following a better-than-expected corporate update. Stock selection amongst financials added further value in April, including overweights to QBE Insurance, ANZ Group and National Australia Bank. Other key holdings to add value over the period were underweights to Mineral Resources and New Zealand’s a2 Milk Company. In contrast, stock selection within the industrials sector detracted from overall performance, including an underweight to toll road operator Transurban Group, which rose almost 6% after average daily traffic volumes increased sharply in the March quarter. Stock selection amongst property trusts also weighed on returns in April; notably underweights to strongperforming names like Stockland, Scentre Group and Mirvac Group. Our broader underweight to the sector further impacted performance, albeit modestly. Other notable positions to impact returns were an underweight to Wesfarmers and overweights to gold miner Perseus Mining and iron ore major Rio Tinto.
Performance Commentary - March 31, 2023 The Russell Investments Australian Shares Fund outperformed the benchmark in the March quarter.
Contributing to the Fund’s outperformance was strong stock selection within the financials space. This included material underweights to Commonwealth Bank of Australia and Westpac Banking Corp.; both of which significantly underperformed the broader market over the period. Stock selection within the information technology sector also added value in the first quarter; notably overweights to strong-performing names like Xero, WiseTech Global and Altium. Stock selection amongst consumer discretionary names also contributed positively to performance, including a sizable overweight to gaming machine maker Aristocrat Leisure; the stock jumping almost 22% over the period. Other notable positions to add value were overweights to plumbing supplies group Reece Ltd. and Viva Energy Group. In contrast, stock selection within the materials sector detracted from overall returns. This included an underweight to iron ore major Fortescue Metals Group and a nil exposure to lithium miner Liontown Resources, which almost doubled in price after US commodities giant Albemarle offered to buy the company. Stock selection within the consumer staples space also weighed on returns; notably underweights to Woolworths and Coles. Both stocks made strong gains over the period.
Our broader underweight to the consumer staples sector also impacted performance.
Performance Commentary - February 28, 2023 The Russell Investments Australian Shares Fund outperformed the benchmark in February.
Contributing to the Fund’s outperformance was strong stock selection amongst financials, including overweights to QBE Insurance and Suncorp Group and a material underweight to Commonwealth Bank of Australia (CBA). Both QBE and Suncorp rose on the back of positive earnings updates, while CBA, which hit a record high early in the period, fell on concerns the bank’s profit margin may have reached its peak given rising funding costs and the increasing risk of loan defaults. Stock selection within the consumer discretionary space also added value over the period; notably an overweight to gaming machine maker Aristocrat Leisure, which climbed 7.6% for the month. Other notable positions to add value in February were underweights to Domino’s Pizza and lithium producer Pilbara Minerals; both of which fell sharply over the period. In contrast, stock selection within materials detracted from overall performance, including overweights to IGO Ltd. and Evolution Mining. Stock selection amongst industrials also weighed on returns; notably an underweight to toll road operator Transurban Group, which rose after management announced record first-half earnings. Other key holdings to impact performance were underweights to Woolworths, Orica and Medibank Private.
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