Russell Global Listed Infrastructure $A Hedged aims to provide a total return, before costs and tax, higher than the fund’s benchmark over the long term by providing exposure to a diversified portfolio of predominantly global listed infrastructure securities, largely hedged into Australian dollars. The Fund invests predominantly in infrastructure and infrastructure related securities listed on stock exchanges in developed and emerging markets (such as countries included in the S&P Global Infrastructure Index).The Fund may also invest in unlisted securities on a limited basis. Foreign currency exposures are largely hedged back to Australian dollars.
The Russell Investments Global Listed Infrastructure Fund (AUD hedged) underperformed the benchmark in the September quarter.
Contributing to the Fund’s underperformance was poor stock selection within the airports sector. This included underweights to Japan Airport Terminal Co. and Germany’s Fraport AG Frankfurt Airport Services Worldwide; operator of Frankfurt Airport. Stock selection amongst gas and multi utilities also weighed on returns; notably ex-benchmark holdings in Hong Kong-listed ENN Energy and Danish multinational energy company Ørsted A/S. Both stocks fell sharply over the period. Performance was further impacted by an underweight to marine ports. In contrast, the Fund benefited from positive stock selection within the energy space, including overweights to US names Targa Resources, Cheniere Energy and Kinder Morgan. Partly offsetting this was our broader underweight to the sector, which climbed after Saudi Arabia and Russia announced plans to extend oil production cuts. In terms of strategic factor performance, our underweight to size detracted from returns as small caps underperformed their larger counterparts over the period. Momentum, value, volatility and quality had no material impact on overall performance.
Moving forward, the Fund is overweight North America, Continental Europe, the UK and Japan, and underweight Australia, Asia Pacific ex Japan and emerging markets. The Fund also maintains material underweights to airports, energy and multi utilities. We remain underweight size due to our strategic preference for smaller companies within the index.
What is Russell Global Listed Infr $A Hedged Russell Global Listed Infr $A Hedged is an Managed Funds investment product that is benchmarked against Global Infrastructure Index and sits inside the Property - Global Listed Infrastructure 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 Global Listed Infr $A Hedged has Assets Under Management of 278.89 M with a management fee of 1.1%, a performance fee of 0 and a buy/sell spread fee of 0.35%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Russell Global Listed Infr $A Hedged has returned 2.63% in the last month. The previous three years have returned 7.72% annualised and 11.73% each year since inception, which is when the Russell Global Listed Infr $A Hedged 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 Global Listed Infr $A Hedged first started, the Sharpe ratio is NA with an annualised volatility of 11.73%. The maximum drawdown of the investment product in the last 12 months is -2.58% and -26.21% 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 Global Listed Infr $A Hedged has a 12-month excess return when compared to the Property - Global Listed Infrastructure Index of 3.42% and -0.22% 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 Global Listed Infr $A Hedged has produced Alpha over the Property - Global Listed Infrastructure 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 Property - Global Listed Infrastructure Index category, you can click here for the Peer Investment Report.
What level of diversification will Russell Global Listed Infr $A Hedged provide?
Russell Global Listed Infr $A Hedged has a correlation coefficient of 0.95 and a beta of 0.98 when compared to the Property - Global Listed Infrastructure 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 Global Listed Infr $A Hedged and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Russell Global Listed Infr $A Hedged with the Global Infrastructure Index?
For a full quantitative report on Russell Global Listed Infr $A Hedged compared to the Global Infrastructure Index, you can click here.
Can I sort and compare the Russell Global Listed Infr $A Hedged to do my own analysis?
To sort and compare the Russell Global Listed Infr $A Hedged financial metrics, please refer to the table above.
Has the Russell Global Listed Infr $A Hedged 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 Global Listed Infr $A Hedged?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Russell Global Listed Infr $A Hedged. 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 Global Listed Infrastructure Fund (AUD hedged) underperformed the benchmark in August.
Currency hedging weighed the most on performance over the period. A material overweight to the poor-performing gas utilities sector also detracted from returns; notably our holding in Hong Kong-listed ENN Energy, which fell more than 32% amid declining revenue and sales volumes. Performance was further impacted by an underweight to the energy space, which outperformed the broader market as oil prices extended their gains. However, this positioning was more than offset by stock selection within the sector, including overweights to US names Targa Resources and Cheniere Energy. The Fund also benefited from stock selection within the transportation space. This included underweights to Spanish airport operator Aena and France’s Getlink SE, which manages and operates the infrastructure of the Channel Tunnel between France and England. Stock selection amongst electric utilities also added value; notably an overweight to US name NextEra Energy, which fell almost 8.5% for the month. In terms of strategic factor positioning, our underweight to size added further value in August as small caps outperformed their larger counterparts over the period. Momentum, value, volatility and quality had no material impact on overall performance.
Moving forward, the Fund is overweight Continental Europe, the US, the UK and Japan and underweight Canada, Asia ex Japan, Australia and emerging markets. The Fund also maintains material underweights to multi utilities, energy and airports. We remain underweight size due to our strategic preference for smaller companies within the index.
Performance Commentary - July 31, 2023 The Russell Investments Global Listed Infrastructure Fund (AUD hedged) outperformed the benchmark in the June quarter. However, the Fund did deliver negative absolute returns over the period. Contributing to the Fund’s outperformance was strong stock selection amongst US utilities, including underweights to poor-performing names like American Electric Power, Eversource Energy and Consolidated Edison. Stock selection amongst airports also added value over the period; notably material underweights to Mexico’s Grupo Aeroportuario del Pacífico S.A.B. de C.V. and Grupo Aeroportuario del Sureste S.A.B. de C.V.; both of which fell sharply amid heightened political turmoil in the country. In contrast, an underweight to the energy space detracted from overall performance; including an underweight to US name The Williams Companies. Other notable positions to impact returns were underweights to French multinational utility company Engie SA and Italian electricity and gas distributor Enel S.p.A. In terms of strategic factor performance, our underweight to size detracted from returns as small caps underperformed their larger counterparts over the period. Momentum, value, volatility and quality had no material impact on performance.
Moving forward, the Fund is overweight North America, Continental Europe, the UK, Japan and Australia and underweight Asia Pacific ex Japan and emerging markets. The Fund also maintains material underweights to airports, energy and multi utilities. We remain underweight size due to our strategic preference for smaller companies within the index.
Performance Commentary - June 30, 2023 The Russell Investments Global Listed Infrastructure Fund (AUD hedged) outperformed the benchmark in the June quarter. However, the Fund did deliver negative absolute returns over the period.
Contributing to the Fund’s outperformance was strong stock selection amongst US utilities, including underweights to poor-performing names like American Electric Power, Eversource Energy and Consolidated Edison. Stock selection amongst airports also added value over the period; notably material underweights to Mexico’s Grupo Aeroportuario del Pacífico S.A.B. de C.V. and Grupo Aeroportuario del Sureste S.A.B. de C.V.; both of which fell sharply amid heightened political turmoil in the country. In contrast, an underweight to the energy space detracted from overall performance; including an underweight to US name The Williams Companies. Other notable positions to impact returns were underweights to French multinational utility company Engie SA and Italian electricity and gas distributor Enel S.p.A. In terms of strategic factor performance, our underweight to size detracted from returns as small caps underperformed their larger counterparts over the period. Momentum, value, volatility and quality had no material impact on performance.
Moving forward, the Fund is overweight North America, Continental Europe, the UK, Japan and Australia and underweight Asia Pacific ex Japan and emerging markets. The Fund also maintains material underweights to airports, energy and multi utilities. We remain underweight size due to our strategic preference for smaller companies within the index.
Performance Commentary - May 31, 2023 The Russell Investments Global Listed Infrastructure Fund (AUD hedged) narrowly outperformed the benchmark in May. However, the Fund did deliver negative absolute returns for the month.
Strong stock selection amongst electric utilities contributed positively to performance over the period. This included underweights to poor-performing US names like American Electric Power, NextEra Energy and Duke Energy. Stock selection amongst multi utilities also added value; notably an ex-benchmark holding in Singapore-listed engineering services company Sembcorp Industries. Underweights to US names Dominion Energy and Sempra Energy were also positive. An ex-benchmark exposure to waste added further value in May, including our holdings in Waste Connections – North America’s thirdlargest waste management company – and Australia’s Cleanaway Waste Management. In terms of strategic factor positioning, our underweight to size added value in May as small caps outperformed their larger counterparts over the period. Momentum, value, volatility and quality had no material impact on overall performance. In contrast, an ex-benchmark exposure to communications detracted from overall performance in May; notably our holdings in US names SBA Communications, American Tower Corp. and Crown Castle. All three stocks posted sharp declines for the month. Moving forward, the Fund is overweight Continental Europe, the US and Japan and underweight the UK, Canada, Asia ex Japan, Australia and emerging markets. The Fund also maintains material underweights to multi utilities, energy and airports. We remain underweight size due to our strategic preference for smaller companies within the index.
Performance Commentary - April 30, 2023 The Russell Investments Global Listed Infrastructure Fund (AUD hedged) outperformed the benchmark in April. An ex-benchmark exposure to the strong-performing toll roads sector contributed positively to performance over the period. This included our holding in Brazil’s CCR S.A., which climbed almost 10% for the month. The toll roads sector outperformed on the back of some strong earnings results and an encouraging outlook for traffic volumes. Stock selection amongst electric utilities also added value in April; notably underweights to Spain’s Iberdrola SA and US names NextEra Energy and Eversource Energy.
Stock selection amongst marine ports and our long-held underweight to airports added further value over the period. In contrast, an ex-benchmark exposure to communications infrastructure detracted from overall fund performance in April; notably our holding in US telecommunications company Crown Castle, which fell almost 7.0% for the month. Other notable positions to impact performance were underweights to Italy’s Enel S.p.A. and Australia’s Qube Holdings. In terms of strategic factor positioning, our underweight to size detracted from returns in April as small caps underperformed their larger counterparts over the period. Momentum, value, volatility and quality had no material impact on overall performance. Moving forward, the Fund is overweight Continental Europe, the US, the UK and Australia and underweight Canada, Asia ex Japan, emerging markets and Japan. The Fund also maintains material underweights to multi utilities, energy and airports. We remain underweight size due to our strategic preference for smaller companies within the index.
Performance Commentary - March 31, 2023 The Russell Investments Global Listed Infrastructure Fund (AUD hedged) outperformed the benchmark in the March quarter. Contributing to the Fund’s outperformance was strong stock selection in Continental Europe, including ex-benchmark holdings in France’s VINCI SA and Spanish wireless telecommunications company Cellnex Telecom SA.
Stock selection amongst electric utilities also added value over the period; notably underweights to US names The Southern Company, American Electric Power and Duke Energy. An ex-benchmark exposure to toll roads added further value in the first quarter, including our holdings in Brazil’s CCR S.A. and Mexico’s Promotora y Operadora de Infraestructura SAB de CV. Other notable positions to add value were underweights to US names The Williams Companies and Constellation Energy Corp.; both of which fell sharply over the period.
In terms of strategic factor performance, our underweight to size added value as small caps outperformed their larger counterparts over the period. Meanwhile, momentum, value, volatility and quality had no material impact on performance. In contrast, an underweight to airports and poor stock selection amongst gas utilities detracted from overall returns; the latter including ex-benchmark holdings in Canada’s AltaGas and Australia’s APA Group. Moving forward, the Fund is overweight North America, Continental Europe and the UK and underweight Asia Pacific ex Japan, emerging markets and Japan.
The Fund also maintains material underweights to airports, energy and multi utilities. We remain underweight size due to our strategic preference for smaller companies within the index.
Performance Commentary - February 28, 2023 The Russell Investments Global Listed Infrastructure Fund (AUD hedged) outperformed the benchmark in February. However, the Fund did deliver negative absolute returns for the month.
Stock selection within electric utilities contributed positively to performance over the period, including underweights to poor-performing US names NextEra Energy, Duke Energy and The Southern Company. The Fund also benefited from positive stock selection amongst industrials; notably underweights to Hong Kong-listed COSCO Shipping Ports and Shenzhen International Holdings. An underweight exposure and positive stock selection within the energy space added further value over the period, including underweights to Canada’s Enbridge and the US’ Williams Companies. In terms of strategic factor positioning, our underweight to size added further value in February as small caps outperformed their larger counterparts over the period. Momentum, value, volatility and quality had no material impact on overall returns. In contrast, an exbenchmark exposure to the real estate sector detracted from returns. This included overweights to US names SBA Communications, Crown Castle and American Tower Corp.
Other notable positions to impact performance were underweights to Australia’s Qube Holdings and the UK’s National Grid. Moving forward, the Fund is overweight Continental Europe, the US, the UK and Australia and underweight Canada, Asia ex Japan, emerging markets and Japan. The Fund also maintains material underweights to multi utilities, energy and airports. We remain underweight size due to our strategic preference for smaller companies within the index.
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