Russell Investments Conservative Fund

Transcription

1 Conservative Asset allocation as at 30 November objective 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. strategy The 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. Performance review 1,2 Fixed Int & Cash 69.0 Int Shares 12.8 Aust Shares 10.7 Alternatives 7.5 Period ending 30/11/ month 3 months 1 year 3 years p.a. 5 years p.a. Since inception p.a. Total return Distribution Growth Growth of $10,000 40,000 30,000 facts Share class Class A Inception date 31 October 2000 size AUD m Portfolio manager Andrew Sneddon Recommended investment timeframe 3 years Tax structure Investment - Class A APIR code RIM0002AU ARSN code Management cost 0.70 Performance-related fee ,000 10, commentary The Conservative underperformed the benchmark in November. The s 70 allocation to income assets such as Australian and international bonds and cash tends to drive returns. The s domestic equities portfolio weighed on performance, with the Russell Investments Australian Shares Tracker delivering negative absolute and benchmarkrelative returns for the month. Much of the Tracker s underperformance was driven by an overweight to the energy sector and an underweight to defensives such as listed property trusts. Also detracting from performance were our exposures to the Russell Investments Multi-Strategy Volatility Premia and the Emerging Market Debt Local Currency. In contrast, the benefited from positive benchmark-relative returns from the Tax Effective Global Shares ; its outperformance driven in part by an overweight to emerging markets equities. Meanwhile, the s exposure to traditional fixed income assets had no meaningful impact on returns in November, with both the Australian Bond and the International Bond (AUD hedged) performing in line with their respective benchmarks over the period. In terms of overall positioning, we reduced the s exposures to both floating rate credit and global listed property over the period. For the year ending 30/6/2018 as a percentage of net assets. Includes performance-related fees. Refer to PDS for further information. For the year ending 30/6/2018. May be charged if performance targets are met. Refer to PDS for further information. 01

2 Conservative (continued) Actual asset allocation as at 30 November Australian Bond 26.2 Australian Cash Enhanced International Bond - A$ Hedged Floating Rate 4.6 Global Bond AUD Hedged Global Bond AUD Hedged DUR Hedged Absolute Return Bond 3.4 Fixed Interest and Cash 69.0 Australian Cash Global Bond USD Hedged Cash Multi-Asset Factor Exposure Tax Effective Global Shares Global Opportunities - A$ Hedged Vanguard International Properties Securities Global Opportunities International Shares 12.8 International Shares - Derivatives -4.0 Australian Shares Tracker 12.3 Australian Shares - Derivatives -1.6 Australian Shares 10.7 Multi Asset Income Strategy Emerging Markets Debt Local Currency Amundi Absolute Volatility World Equities Global Listed Infrastructure Multi-Strategy Volatility Premia Alternatives 7.5 Global High Yield Global High Yield USD Hedged 02

3 Conservative (continued) Australian Shares Australian Shares Tracker DFA Deep value small cap Investors Mutual Limited Bottom-up with defensive characteristics Karara Capital Core Numeric Investors Quantitative Platypus Aggressive growth International Shares Global Opportunities - $A Hedged J O Hambro Capital Management Man Numeric Investors RWC Partners Global emerging markets Sanders Capital, LLC Core global value Wellington Management Company LLP Core global growth horizons Global Opportunities J O Hambro Capital Management Man Numeric Investors RWC Partners Global emerging markets Sanders Capital, LLC Core global value Wellington Management Company LLP Core global growth horizons Multi-Asset Factor Exposure Core Tax Effective Global Shares Quality growth J O Hambro Defensive value Morgan Stanley Growth global RWC Asset Advisors Opportunistic theme-driven, emerging markets Sanders Capital Value global Vanguard International Property Securities Index (Hedged) Vanguard Passive Alternatives Amundi Absolute Volatility World Equities AUD Hedged Amundi Volatility Multi-Asset Income Strategy Alternatives 03

4 Conservative (continued) Global High Yield Barings, LLC Credit selection DDJ Capital Sector specialist, lower rated high yield Hermes Sourcecap Global, top-down Core, global Positioning strategy Global Listed Infrastructure - Hedged Cohen & Steers Growth, valuation sensitive Colonial First State amental with growth at a reasonable price Maple-Brown Abbott Limited Absolute return, benchmark agnostic Nuveen Style Neutral, diversified Active risk overlay Emerging Market Debt Local Currency Babson Value driven, quant & qualitative Value driven, country selection & currency management GLG Partners amental approach, currency & rates Multi-Strategy Volatility Premia Volatility Fixed Interest and Cash Australian Bond AMP Capital Positioning strategy UBS Western Asset Australian Cash Enhanced Perpetual Cash enhanced Australian Cash Cash Management Global Bond International Bond - $A Hedged Unconstrained Bond H20 Asset Management, LLP Diversifier Hermes Investment Management Core Yield Post Advisory Group Core Yield 04

5 Conservative (continued) Unconstrained Bond Putnam Investment Management, LLC RIC Global Bond USD Hedged Brookfield Loomis Sayles Russell Absolute Return Bond Global Bond AUDH DURH Floating Rate Intermediate Capital Group PLC THL Credit Advisors TwentyFour Asset Management Voya Investment Management Opportunistic Cash & Other Securitised Specialist Rates & Currency Value Macro / Bottom-Up Credit Macro / Sector Rotation Multi-Strategy Absolute Return European leveraged loans US leveraged loans European asset backed securities US asset-backed securities Contact To find out more about or how you can diversify your portfolio in just one transaction, you can: > visit our website at russellinvestments.com.au To invest in Retail s, contact your adviser today For more information: NSW, QLD, ACT & NT: VIC, SA, WA & TAS: Footnotes 1 Performance is net of fees and charges. Assumes reinvestment of income. Past performance is not a reliable indicator of future performance. 2 The distribution return reflects income paid from the, whilst the growth return reflects changes in the capital values of the units. 3 Allocations may not equal 100 due to rounding. *In order to manage a fund/portfolio to its investment objectives, retains the discretion to change the underlying investments at any time, without notice to investors. Please refer to the relevant Product Disclosure Statement for more information. Important information Issued by Russell Investment Management Ltd ABN , AFS Licence (RIM). This document provides general information for wholesale investors only and has not prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation or needs. This information has been compiled from sources considered to be reliable, but is not guaranteed. The performance data shown does not take into account fees, charges and taxes, and is not a reliable indicator of the net return to you as an investor. Past performance is not a reliable indicator of future performance. Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in any product. The PDS can be obtained by visiting russellinvestments.com.au or by phoning (02) RIM and TRM are part of. or its associates, officers or employees may have interests in the financial products referred to in this information by acting in various roles including broker or adviser, and may receive fees, brokerage or commissions for acting in these capacities. In addition, or its associates, officers or employees may buy or sell the financial products as principal or agent. The Russell Indexes mentioned in this document are trademarks of Frank Russell Company. Frank Russell Company is the owner of the Russell trademarks and all trademark rights related to the Russell trademarks, which the members of the group of companies are permitted to use under license from Frank Russell Company. The members of the group of companies are not affiliated in any manner with Russell or any entity operating under the FTSE Russell brand. Copyright 2018 RIM. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from RIM. 05