Russell Investments Balanced Fund

Transcription

1 Balanced Asset allocation as at 31 July objective To provide returns over the medium to long term, with moderate to high volatility, consistent with a diversified mix of predominantly growth oriented assets and some defensive assets. strategy The typically invests in a diversified portfolio mix with exposure to growth investments of around 70 and defensive investments of around 30. Derivatives may be used to implement investment strategies. Performance review 1,2 Int Shares 34.3 Fixed Int & Cash 31.1 Aust Shares 27.2 Alternatives 7.4 Period ending 31/07/ 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 1,498.40m Portfolio manager Andrew Sneddon Recommended investment timeframe 5 years Tax structure Investment - Class A APIR code RIM0001AU ARSN code Management cost 0.88 Performance-related fee ,000 10, commentary The Balanced outperformed the benchmark in July. The s 70 allocation to growth assets such as Australian and international shares and listed property tends to drive returns. The s Australian equities portfolio contributed positively to performance in July, with the Australian Shares Tracker delivering strong excess and absolute returns. Also positive were our exposures to the Multi- Strategy Volatility Premia, which performed well as volatility remained compressed throughout the period, and the Emerging Market Debt Local Currency. Positive absolute returns from our global bonds portfolio added further value in July, while our domestic bonds exposure had a relatively neutral impact on returns. In contrast, the s global equities portfolio detracted from overall performance in July, with both the Global Opportunities and the Tax Effective Global Shares underperforming their respective benchmarks. An underweight to high-yield debt also weighed on returns. In terms of overall positioning, we reduced our AUD hedging ratio in July. We also increased the s exposure to global and early in the month before trimming these positions toward the end of the period. For the year ending 30/6/2017 as a percentage of net assets. Includes performance-related fees. Refer to PDS for further information. For the year ending 30/6/2017. May be charged if performance targets are met. Refer to PDS for further information. 01

2 Balanced (continued) Actual asset allocation as at 31 July Multi-Asset Factor Exposure Tax Effective Global Shares Global Opportunities - A$ Hedged Vanguard International Properties Securities Global Opportunities International Shares 34.3 International Shares Derivatives 2.0 Australian Bond 9.9 Australian Cash Enhanced International Bond - A$ Hedged Floating Rate 3.8 Fixed Interest and Cash 31.1 Global Bond AUD Hedged DUR Hedged Global Bond AUD Hedged Australian Cash 0.0 Australian Shares Tracker 28.2 Australian Shares Derivatives -0.9 Australian Shares 27.2 Emerging Markets Debt Local Currency Global Listed Infrastructure Multi-Strategy Volatility Premia Amundi Absolute Volatility World Equities Alternatives 7.4 Global High Yield 0.0 Commodites Futures

3 Balanced (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 Volitility Global High Yield Barings, LLC Credit selection 03

4 Balanced (continued) Global High Yield 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 Global Bond AUDH DURH 04

5 Balanced (continued) Global Bond AUDH DURH Floating Rate Intermediate Capital Group PLC THL Credit Advisors TwentyFour Asset Management Voya Investment Management 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 only and has not been 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 and needs. This information has been compiled from sources considered to be reliable, but is not guaranteed. Past performance is not a reliable indicator of future performance. RIM is 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. RIM is the responsibly entity of s and the issuer of the Product Disclosure Statement ("PDS") for each. Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in any. The PDS is currently available by visiting russellinvestments.com.au or by phoning (02)