Russell Intl Property Secs Hedged A aims 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 and Australian listed property securities, largely hedged into Australian dollars. The Fund invests predominantly in property trusts and property related securities listed on stock exchanges in developed international markets. The Fund may also invest in securities which have exposure to properties in emerging markets. Foreign currency exposures are largely hedged back to Australian dollars.
The Russell Investments International Property Securities Fund (AUD Hedged) narrowly outperformed the benchmark in the September quarter. However, the Fund did deliver negative absolute returns over the period.
Contributing to the Fund’s outperformance was stock selection in the US, including overweights to strong-performing names like Welltower and Digital Realty Trust. Other US positions to add value were underweights to Extra Space Storage and Equinix. Stock selection in Australia also added value over the period; notably overweights to industrial property giant Goodman Group and Ingenia Communities Group. Stock selection amongst Japanese developers also contributed positively to performance, including an overweight to Mitsubishi Estate Company. In terms of strategic factor performance, our preferences for quality and size added further value over the period, while momentum, value and volatility factors had no meaningful impact on performance. In contrast, an underweight to the US office space detracted from overall returns. This included underweights to Vornado Realty Trust and Boston Properties; both of which recorded strong gains for the quarter.
Moving forward, the Fund is positioned with tilts toward the UK, Japan and Asia ex Japan, and away from North America, Continental Europe and emerging markets. We have a neutral exposure to Australia. In terms of sectors, we prefer data centre, residential and industrial names and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
What is Russell Intl Property Secs Hedged A Russell Intl Property Secs Hedged A is an Managed Funds investment product that is benchmarked against Dvlp Global Real Estate and sits inside the Property - Global Listed Property 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 Intl Property Secs Hedged A has Assets Under Management of 191.93 M with a management fee of 0.85%, 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 Intl Property Secs Hedged A has returned 2.57% in the last month. The previous three years have returned -0.57% annualised and 17.71% each year since inception, which is when the Russell Intl Property Secs Hedged 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 Intl Property Secs Hedged A first started, the Sharpe ratio is NA with an annualised volatility of 17.71%. The maximum drawdown of the investment product in the last 12 months is -5.86% and -67.01% 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 Intl Property Secs Hedged A has a 12-month excess return when compared to the Property - Global Listed Property Index of 0.1% and -0.86% 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 Intl Property Secs Hedged A has produced Alpha over the Property - Global Listed Property 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 Property Index category, you can click here for the Peer Investment Report.
What level of diversification will Russell Intl Property Secs Hedged A provide?
Russell Intl Property Secs Hedged A has a correlation coefficient of 0.98 and a beta of 1.06 when compared to the Property - Global Listed Property 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 Intl Property Secs Hedged A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Russell Intl Property Secs Hedged A with the Dvlp Global Real Estate?
For a full quantitative report on Russell Intl Property Secs Hedged A compared to the Dvlp Global Real Estate, you can click here.
Can I sort and compare the Russell Intl Property Secs Hedged A to do my own analysis?
To sort and compare the Russell Intl Property Secs Hedged A financial metrics, please refer to the table above.
Has the Russell Intl Property Secs Hedged 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 Intl Property Secs Hedged A?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Russell Intl Property Secs Hedged 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 Property Securities Fund (AUD hedged) outperformed the benchmark in August. However, the Fund did deliver negative absolute returns for the month.
Much of the Fund’s outperformance was driven by strong stock selection in the US; notably overweights to Prologis, Welltower and Digital Realty Trust. Other US positions to contribute positively to performance were overweights to Equinix and Americold Realty Trust. The Fund also benefited from stock selection in Asia ex Japan, including overweights to Hong Kong-listed names CK Asset Holdings and Sun Hung Kai Properties. Stock selection in Japan added further value over the period; notably overweights to developers Mitsubishi Estate Co. and Mitsui Fudosan Co. In terms of strategic factor positioning, our tilts toward quality and size were positive for the month, while momentum, value and volatility factors had no meaningful impact on overall returns. In contrast, the Fund’s underweight to the US office space detracted from performance in August, albeit modestly. This included underweights to Boston Properties and Vornado Realty Trust; both of which outperformed the broader market over the period. Other notable positions to impact returns were underweights to Japan’s Hulic Co. and Australian developer Mirvac Group. Moving forward, the Fund is positioned with tilts toward the UK, Japan, Australia and Asia ex Japan, and away from North America and Continental Europe. In terms of sectors, we prefer data centres, residential and specialty and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
Performance Commentary - July 31, 2023 The Russell Investments International Property Securities Fund (AUD hedged) underperformed the benchmark in July. However, the Fund did deliver positive absolute returns for the month.
Much of the Fund’s underperformance was driven by poor stock selection in the US; notably underweights to Alexandria Real Estate Equities, Prologis and Boston Properties. All three stocks posted strong gains for the month. Other US positions to impact performance were overweights to UDR, Welltower and Mid-America Apartment Communities. Our broader underweight to the strong-performing US office space also weighed on returns. In terms of strategic factor positioning, our tilt toward quality stocks impacted performance, while our size bias added value. Momentum, value and volatility factors had no meaningful impact on overall returns. In contrast, the Fund benefited from strong stock selection in Continental Europe. This included overweights to German names Vonovia SE, LEG Immobilien SE and TAG Immobilien AG. Overweights to Sweden’s Castellum AB and France’s Klépierre S.A. also added value. Other notable positions to contribute positively to performance over the period were underweights to US selfstorage names Extra Space Storage and CubeSmart.
Moving forward, the Fund is positioned with tilts toward the UK, Japan and Asia ex Japan and away from North America, Continental Europe and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
Performance Commentary - June 30, 2023 The Russell Investments International Property Securities Fund (AUD Hedged) outperformed the benchmark in the June quarter.
Stock selection in the US contributed positively to performance over the period, including overweights to strong-performing names like Welltower, Digital Realty Trust and Americold Realty Trust. An overweight to US data centres also added value; the sector performing well amid the optimism surrounding the artificial intelligence space. Stock selection in Continental Europe added further value over the period, including exbenchmark holdings in Germany’s TAG Immobilien AG and Vonovia SE. Both stocks posted strong gains for the quarter. In terms of strategic factor performance, our preferences for quality and size contributed positively to returns over the period, while momentum, value and volatility factors had no meaningful impact on overall performance.
In contrast, overweights to poor-performing regions like the UK and Asia ex Japan detracted from returns in the second quarter. Stock selection in Japan also weighed on performance; notably overweights to real estate investment trusts Japan Metropolitan Fund Investment Corp. and Nippon Prologis REIT.
Moving forward, the Fund is positioned with tilts toward the UK, Asia ex Japan and Australia, and away from North America, Continental Europe and Japan. In terms of sectors, we prefer residential, malls and technology names and maintain underweights to office, lodging and healthcare. We also maintain strategic overweights to both quality and size.
Performance Commentary - May 31, 2023 The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in May. However, the Fund did deliver negative absolute returns for the month.
Strong stock selection in the US contributed positively to performance over the period; notably underweights to poor-performing names like Prologis and Ventas. Other US positions to add value were overweights to Digital Realty Trust and Invitation Homes. The Fund also benefited from positive stock selection in Australia, including overweights to Charter Hall Group, Dexus and industrial property giant Goodman Group. In terms of strategic factor positioning, our tilts toward size and quality added value in May, while momentum, value and volatility factors had no meaningful impact on overall performance.
In contrast, stock selection in the UK detracted from returns in May. This included overweights to British Land Co. and self-storge companies Safestore and Big Yellow Group. All three stocks posted sharp declines for the month. Stock selection in Singapore also weighed on performance; notably an ex-benchmark holding in investment company CapitaLand.
Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan and away from North America, Continental Europe, Japan and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
Performance Commentary - April 30, 2023 The Russell Investments International Property Securities Fund (AUD hedged) outperformed the benchmark in April.
Strong stock selection in the US contributed positively to performance over the period; notably an overweight to Welltower, which climbed almost 11.0% for the month. Welltower invests in healthcare infrastructure. Other US positions to add value were underweights to poor-performing names like Extra Space Storage and industrial property giant Prologis.
The Fund also benefited from positive stock selection in Continental Europe, including an ex-benchmark holding in German residential company Vonovia SE; the stock jumping 16.3% in April. Our long-held underweight to the US office sector added further value over the period. In terms of strategic factor positioning, our tilts toward size and quality added value in April, while momentum, value and volatility factors had no meaningful impact on overall performance. In contrast, stock selection in Australia detracted from returns in April. This included underweights to Mirvac Group and shopping centre operators Vicinity Centres and Scentre Group.
All three stocks recorded strong gains for the month. Underweight exposures to the strong-performing Japanese developer and real estate investment trust sectors also weighed on performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan and away from North America, Continental Europe, Japan and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
Performance Commentary - March 31, 2023 The Russell Investments International Shares Fund (AUD hedged) 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 America 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 Property Securities Fund (AUD hedged) performed in line with the benchmark in February.
An underweight exposure to the poor-performing US office space contributed positively to performance over the period; notably underweights to Alexandria Real Estate Equities and Boston Properties. Both stocks traded lower throughout the month. The Fund also benefited from positive stock selection amongst US healthcare names, including underweights to Medical Properties Trust and Welltower. An ex-benchmark exposure to Japanese developers added further value in February. In contrast, stock selection amongst Japanese real estate investment trusts detracted from overall performance; notably an overweight to MORI TRUST REIT. Other key holdings to impact performance were underweights to US storage names CubeSmart and Extra Space Storage. An overweight to the Hong Kong market also weighed on returns, though this was largely offset by strong stock selection within the country. In terms of strategic factor positioning, our tilt toward size added value in February, while our quality bias detracted from returns. Momentum, value and volatility factors had no meaningful impact on overall performance. Moving forward, the Fund is positioned with tilts toward the UK and Asia ex Japan and away from North America, Continental Europe and Australia. In terms of sectors, we prefer residential, specialty and data centres and maintain underweights to office, lodging and shopping centres. We also maintain strategic overweights to both quality and size.
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