Russell International Shares A 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 international shares. The Fund invests predominantly in a broad range of international shares listed on stock exchanges in developed international markets. The Fund may also be exposed to emerging market shares. Derivatives may be used to obtain or reduce exposure to securities and markets, to implement investment strategies and to manage risk.
The Russell Investments International Shares Fund outperformed the benchmark in the September quarter.
Stock selection in Continental Europe contributed positively to fund performance over the period; notably overweights to leading Danish pharmaceutical company Novo Nordisk A/S, Swiss bank UBS Group AG and Swiss-French human resources company Adecco Group AG. All three stocks recorded strong, double-digit gains for the quarter. Stock selection in Japan also added value, including overweights to car maker Honda Motor Co. and insurers T&D Holdings and MS&AD Insurance Group. Stock selection in Asia ex Japan added further value in the third quarter; notably an underweight to Hong Kongbased multinational insurance and finance company AIA Group, which fell more than 16% over the period. In contrast, stock selection in the US detracted from overall performance. This included underweights to chipmaker NVIDIA Corp., pharmaceutical company Eli Lilly & Co. and oil major Exxon Mobil; all of which posted very strong gains for the quarter. Other US positions to impact returns were overweights to HCA Healthcare, ratings agency Moody’s Corp. and Microsoft. Stock selection in emerging markets also weighed on returns; notably our holdings in India’s HDFC Bank, Brazilian financial services company Banco Bradesco S.A. and South Korea’s Samsung Electronics. Performance was further impacted by stock selection in the UK, albeit modestly. This included an overweight to drinks maker Diageo and an underweight to multinational aerospace and defence company Rolls-Royce.
What is Russell International Shares A Russell International Shares A is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large 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 International Shares A has Assets Under Management of 695.15 M with a management fee of 0.98%, a performance fee of 0 and a buy/sell spread fee of 0.25%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Russell International Shares A has returned -0.48% in the last month. The previous three years have returned 10.84% annualised and 11.88% each year since inception, which is when the Russell International Shares 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 International Shares A first started, the Sharpe ratio is NA with an annualised volatility of 11.88%. The maximum drawdown of the investment product in the last 12 months is -3.04% and -47.98% 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 International Shares A has a 12-month excess return when compared to the Foreign Equity - Large Multi-Manager Index of 0.96% and 0.07% 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 International Shares A has produced Alpha over the Foreign Equity - Large 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 Foreign Equity - Large Multi-Manager Index category, you can click here for the Peer Investment Report.
What level of diversification will Russell International Shares A provide?
Russell International Shares A has a correlation coefficient of 0.98 and a beta of 0.98 when compared to the Foreign Equity - Large 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 International Shares A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Russell International Shares A with the Developed -World Index?
For a full quantitative report on Russell International Shares A compared to the Developed -World Index, you can click here.
Can I sort and compare the Russell International Shares A to do my own analysis?
To sort and compare the Russell International Shares A financial metrics, please refer to the table above.
Has the Russell International Shares 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 International Shares A?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Russell International Shares 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 International Shares Fund outperformed the benchmark in August.
A material overweight to the strong-performing emerging markets space contributed positively to performance over the period. Stock selection within the sector also added value, including an overweight to Argentine e-commerce platform MercadoLibre and short positions in China’s Tencent and Taiwan Semiconductor Manufacturing Co. Stock selection in Continental Europe added further value in August; notably overweights to Swiss bank UBS and Danish multinational pharmaceutical company Novo Nordisk A/S. Both stocks made very strong gains for the month. Novo Nordisk in particular climbed almost 20%, which saw it overtake French luxury group LVMH Moët Hennessy Louis Vuitton as Europe’s most valuable company. Other notable positions to add value were underweights to Japan’s Sony Group and UK pharmaceutical firm AstraZeneca. In contrast, stock selection in the US detracted from overall performance in August, including underweights to strong-performing names like Eli Lilly & Co., chip maker NVIDIA and e-commerce platform Amazon.com. Other US positions to impact returns were overweights to Meta Platforms (formerly Facebook) and Microsoft. Stock selection in Australia also weighed on performance over the period, albeit modestly. This included overweights to Telstra and national carrier Qantas. Other key holdings to impact returns were overweights to Japanese electronics company Keyence Corp. and German car makers Bayerische Motoren Werke AG (BMW) and Mercedes-Benz Group A/G.
Performance Commentary - July 31, 2023 The Russell Investments International Shares Fund underperformed the benchmark in July. However, the Fund did deliver positive absolute returns for the month.
Stock selection in emerging markets detracted from performance over the period; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. (TSMC), which fell after management said it expected sales to decline this year amid waning demand. TSMC is the world’s largest manufacturer of computer chips. Other emerging markets positions to impact returns were ex-benchmark holdings in India’s HDFC Bank and South Korea’s Samsung Electronics. Stock selection in Japan also weighed on performance in July, albeit modestly. This included overweights to electronics company Keyence Corp. and telco KDDI Corp. Other notable positions to impact returns were an overweight to Danish transport and logistics group DSV A/S and Swedish audio streaming platform Spotify. In contrast, the Fund benefited from stock selection in the US. This included an underweight to Apple and overweights to Uber Technologies, Meta Platforms (formerly Facebook) and ratings agency MSCI, Inc. Stock selection in Continental Europe also added value in July; notably overweights to Swiss-French recruitment company The Adecco Group and Dutch bank ING Groep N.V. Stock selection in the UK added further value over the period, albeit slightly. This included overweights to Intercontinental Hotels Group and Standard Chartered. Other key holdings to contribute positively to performance were an exbenchmark exposure to Chinese shopping platform Meituan and Dutch semiconductor manufacturer ASML Holding N.V.
Performance Commentary - June 30, 2023 The Russell Investments International Shares Fund performed in line with the benchmark in the June quarter.
Stock selection in Continental Europe contributed positively to fund performance 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). All three stocks recorded strong, double-digit gains for the quarter. Stock selection in emerging markets also added value, including short positions in China’s Tencent Holdings and Alibaba Group. However, this was partly offset by our broader overweight to the region, with emerging markets underperforming their developed counterparts over the period. Stock selection in Canada added further value in the second quarter; notably an overweight to multinational ecommerce platform Shopify. In contrast, stock selection in the US detracted from overall performance. This included 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, pharmaceutical company Eli Lilly & Co. and semiconductor manufacturer Broadcom. Stock selection in Japan also weighed on returns; notably overweights to electronics company Keyence Corp. and Ono Pharmaceutical. Performance was further impacted by stock selection in the UK, including an overweight to drinks maker Diageo and an underweight HSBC Holdings.
Performance Commentary - May 31, 2023 The Russell Investments International Shares Fund performed in line with the benchmark in May.
Stock selection in emerging markets contributed positively to performance over the period. This included ex-benchmark holdings in technology names like Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics; both of which posted very strong gains for the month. Other emerging markets exposures to add value were short positions in China’s Tencent Holdings and Brazilian iron ore major Vale S.A.
The Fund also benefited from stock selection in Canada; notably an overweight to ecommerce platform Shopify, which climbed almost 21% in May. At the sector level, stock selection was strongest within industrials. This included an overweight to Danish transport and logistics company DSV A/S and an underweight to French construction firm VINCI SA. In contrast, 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 for the month. Other US positions to impact returns were underweights to e-commerce giant Amazon.com and streaming platform Netflix. An overweight to Continental Europe also weighed on performance, albeit modestly. This included our holdings in Italian luxury fashion house Moncler S.p.A. and Swiss multinational food and drink company Nestlé S.A.
Performance Commentary - April 30, 2023 The Russell Investments International Shares Fund outperformed the benchmark in April. Contributing to the Fund’s outperformance was strong stock selection in the US; notably an underweight to electric car maker Tesla, which fell almost 20% in April. Other US positions to add value were overweights to Meta Platforms (formerly Facebook), AutoZone and HCA Healthcare.
The Fund also benefited from positive stock selection in Continental Europe, including overweights to Swiss pharmaceutical company Novartis, French investment bank BNP Paribas SA and Dutch bank ING Groep NV. At the sector level, stock selection was strongest within the consumer discretionary space. In addition to our positions in Tesla and AutoZone, this included a short position in China’s Alibaba Group and overweights to French luxury goods makers Hermès and LVMH Moët Hennessy Louis Vuitton.
Other notable positions to add value over the period were overweights to Italian luxury fashion house Moncler S.p.A. and Swiss food and beverage company Nestlé S.A. In contrast, stock selection in the UK detracted from overall performance in April, albeit modestly. This included underweights to AstraZeneca, HSBC Holdings and Prudential. An overweight to emerging markets also weighed on returns; though this was largely offset by positive stock selection within the space. In terms of sectors, stock selection amongst industrials impacted the most on performance; notably overweights to Uber Technologies and Danish transport and logistics company DSV A/S.
Performance Commentary - March 31, 2023 The Russell Investments International Shares Fund outperformed the benchmark in the March quarter. Contributing to the Fund’s outperformance was a material overweight to emerging markets; notably an ex-benchmark holding in Taiwan Semiconductor Manufacturing Co. and an overweight to Argentine e-commerce company MercadoLibre.
Both stocks posted strong, double-digit gains for the quarter. An overweight to Continental Europe also added value. This included overweights to Danish transport company DSV A/S and German car makers Mercedes-Benz AG and Bayerische Motoren Werke AG (BMW). Stock selection in the UK added further value over the period, including underweights to British American Tobacco and commodities giant Glencore. Other notable positions to contribute positively to performance were an ex-benchmark holding in Swedish music streaming platform Spotify Technology SA and an overweight to Italian luxury fashion house Moncler S.p.A. In contrast, stock selection in the US detracted from overall performance.
This included 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 Japan also weighed on performance; notably overweights to T&D Holdings, Dai-Ichi Life and Ono Pharmaceutical Co. Other key positions to impact returns were an overweight to Switzerland’s Roche Holding AG and a short position in Dutch semiconductor company ASML Holding NV.
Performance Commentary - February 28, 2023 The Russell Investments International Shares Fund outperformed the benchmark in February.
Contributing to the Fund’s outperformance was an overweight exposure and strong stock selection within emerging markets; notably short positions in China’s Alibaba Group, Tencent Holdings and JD.com. All three stocks posted sharp declines for the month. Stock selection in Continental Europe also added value in February. This included overweights to Danish transport and logistics company DSV A/S and German car makers MercedesBenz Group AG and Bayerische Motoren Werke AG (BMW). At the sector level, stock selection was strongest amongst communication services. In addition to our short position in Tencent Holdings, this included an overweight to Meta Platforms (formerly Facebook) and an ex-benchmark exposure to Swedish music streaming service Spotify. In contrast, stock selection in the US detracted from overall performance. This included underweights to large growth names like Apple, NVIDIA Corp. and electric car maker Tesla; all of which posted strong gains for the month. Stock selection in Canada also weighed on returns; notably overweights to Shopify and Barrick Gold Corp. Performance was further impacted by stock selection in Asia Pacific ex Japan, albeit modestly. This included overweights to Singapore’s Grab Holdings and Hong Kong’s Link Real Estate Investment Trust. Other notable positions to impact returns were an overweight to US ratings agency Moody’s Corp. and an ex-benchmark holding in China’s Meituan.
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