Russell Investments

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Multi-asset review Q3 2019

November 2019
Our multi-asset team, discusses Russell Investments' performance in the September quarter and the outlook for the remainder of 2019.

Multi-asset review Q2 2019

July 2019
Our multi-asset team, discusses Russell Investments' performance in the June quarter and the outlook for the remainder of 2019.

June 2019

Multi-asset review Q1 2019

March 2019
Our multi-asset team, discusses Russell Investments' performance in the March quarter and the outlook for the remainder of 2019.

Annual market update

January 2019
Here is a summary of investment markets for the year to 31 December 2018.

Russell Investments quarterly update

January 2019
Here’s a summary of investment markets for the three months ending 31 December 2018

Russell monthly update

December 2018
Here is a summary of investment markets for the month of November 2018.

Russell monthly update

November 2018
Here is a summary of investment markets for the month of October 2018.

Russell quarterly update

October 2018
Here’s a summary of investment markets for the three months ending 30 September 2018

Russell monthly update

September 2018
Here is a summary of investment markets for the month of August 2018.

Investing is a house

August 2018
If you’re like me, looking to build a house on your own, then the following should come as no surprise: In order to construct a new home, I first off have to know my strengths—and areas where I need to rely on experts and specialists instead.

Russell monthly update

August 2018
Here is a summary of investment markets for the month of July 2018.

Annual market update

July 2018
Here's a summary of investment markets for the financial year ending 30 June 2018.

Russell quarterly update

July 2018
Here is a summary of investment markets for the three months ending 30 June 2018

Russell monthly update

June 2018
Here is a summary of investment markets for the month of May 2018

Netwealth US Study Tour 2018 – Adviser panel

May 2018
At Russell Investments, we are known for our global investment capability and the people we have ‘on the ground’ in over 20 locations researching managers and sharing local market insights.

Russell monthly update

May 2018
Here is a summary of investment markets for the month of April 2018

Russell quarterly update

April 2018
Here is a summary of investment markets for the three months ending 31 March 2018

Dividend Opportunities

April 2018
Semi-annual Index Reconstitution
Russell Investments High Dividend Australian Shares ETF (RDV)

Russell monthly update

March 2018
Here is a summary of investment markets for the month of February 2018

Russell monthly update

February 2018
Here is a summary of investment markets for the month of January 2018

Russell quarterly update

January 2018
Here’s a summary of investment markets for the three months ending 31 December 2017

Currencies: Don’t be tempted by yield

December 2017
Despite offering higher interest rates than most of their developed-market counterparts, the U.S. dollar (USD) and the New Zealand dollar (NZD) were the two worst performers among Group of Ten (G10) currencies in 2017. We would not bet on a reversal of that trend. The story is different with emerging markets (EM) currencies, which are still appealing despite a tentative recovery this year.

Executive Summary

December 2017
Markets have turned optimistic, but it’s late in the cycle and central banks are becoming hawkish. The challenge ahead is to safely navigate between euphoria and danger.

Outlook 2018: Running with the bulls

December 2017
2017 delivered better-than-expected global equity returns, but the cycle is old and the Fed is set to step up the pace of rate hikes. The current bullish momentum will face strengthening headwinds as 2018 progresses.

United States: Too much of a good thing?

December 2017
Global growth has lifted the U.S. economy and multinational earnings to their strongest position in years. But with an eight-year-old U.S. expansion, imbalances gradually building, and expensive market valuations, we believe some caution is warranted for U.S. equities. We forecast lackluster U.S. equity market returns in 2018 and view end-of-cycle risks as becoming elevated thereafter.


Russell monthly update

December 2017
Here is a summary of investment markets for the month of November 2017

Super changes

November 2017
Some important super rules changed on 1 July 2017.

Russell monthly update

November 2017
Here is a summary of investment markets for the month of October 2017

28% of financial advisers surveyed are considering real return funds

October 2017
More than a quarter of the 200 financial advisers we surveyed are considering more sophisticated options, in particular real return funds when reviewing clients’ portfolios, given the current market environment.

Russell quarterly update

October 2017
Here’s a summary of investment markets for the three months ending 30 September 2017

Executive Summary

September 2017
The monetary policy tide is heading out, putting upward pressure on government bond yields. Momentum can drive equity markets higher, but we believe extremely stretched U.S. equity valuation makes the market vulnerable to any unwelcome news.

Asia-Pacific: Riding the wave of momentum?

September 2017
The developed Asia-Pacific economies have been firming, while the developing economies continue to ride the wave of positive momentum. China’s 19th National Congress (due to begin in late October) will be the focus for the region, while geopolitical risks with North Korea will likely remain. Valuations remain slightly expensive, although we note that Japan is looking more attractive than the rest of the region.

Currencies: Euro rally pauses but has legs

September 2017
Everyone seems to love the euro, so much so that it may have become a crowded trade. In the near term, too much optimism could dampen the rally. However, the likely tapering of bond purchases by the European Central Bank in 2018 and the revival of centrist governments will support the euro in the medium term.

The eurozone: The euro versus everything else

September 2017
From the perspective of financial markets, the third quarter of 2017 is best described as "the euro versus everything else." Tailwinds in the form of continued strong economic growth, favourable politics and robust earnings were neutralised by a single headwind: a rising euro exchange rate. Looking ahead, we expect the balance between these two forces to tilt back in favour of the fundamentals, supporting eurozone assets.

Investment Strategy Outlook

September 2017
Moderate growth, low inflation and easy monetary policy appear to provide a positive backdrop for investment portfolios as we look toward the fourth quarter of 2017. We still want to buy dips and sell rallies. Expensive U.S. equity valuation remains our main concern. Cyclical forces are moving in favour of higher government bond yields. We believe the euro has upside and that the U.S. dollar's (USD) downtrend should be arrested by early 2018.

United States: Secondhand growth

September 2017
Cyclical strength in Europe and the emerging markets has rippled back into the U.S. market, helping large-cap businesses beat earnings expectations for two consecutive quarters. However, domestic fundamentals still look mediocre.

Russell monthly update

September 2017
Here is a summary of investment markets for the month of August 2017

Russell Investments annual update

July 2017
Here's a summary of investment markets for the financial year ending 30 June 2017.

Russell Investments quarterly update

July 2017
Here’s a summary of investment markets for the three months ending 30 June 2017.

Investment Strategy Outlook

June 2017
We still want to buy dips and sell rallies against the backdrop of an expensive U.S. equity market, a broadly neutral earnings outlook, and sentiment indicators that point to complacency. Europe and, to a lesser extent, Japan and emerging markets (EM) have better cycle support. Government bonds are expensive, but a lack of global inflation pressure should keep yields in a range.

Currencies: European renaissance

June 2017
The political risks to the eurozone project are fading after elections in France, Austria and the Netherlands put centrists into power. A pro-euro, pro-globalization reform agenda could make the single European currency more appealing in the longer term.

Quantitative modeling insights: repeat performance

June 2017
Our modeling inputs appear stuck in neutral for 2017, offering no reason to change our outlook on equities or recession risk.

Asia-Pacific: tortoise and the hare?

June 2017
The developing Asia-Pacific economies are powering ahead like the speedy hare in the classic fable, although we are less optimistic on the outlook for some of the more developed regional countries that plod along like the fable’s tortoise. Resilient global trade continues to be a tailwind, and AsiaPacific equities currently appear slightly expensive after a strong secondquarter performance.

The eurozone: Markets are closing the gap

June 2017
In the past quarter, eurozone markets started to close the gap between strong fundamentals and weak relative performance. A "good news" show coming from the economy, political developments, earnings growth and monetary policy pushed markets higher. Although this rally has stretched near-term sentiment, we expect the eurozone to continue to do well in the medium term.

Executive Summary

June 2017
We still want to buy dips and sell rallies against the backdrop of an expensive U.S. equity market, a broadly neutral earnings outlook, and sentiment indicators that point to complacency. Europe and, to a lesser extent, Japan and emerging markets (EM) have better cycle support. Government bonds are expensive, but a lack of global inflation pressure should keep yields in a range.

Russell Investments monthly update

June 2017
Here is a summary of investment markets for the month of May 2017

Monthly update

May 2017
Here is a summary of investment markets for the month of April 2017

Quarterly update

April 2017
Here’s a summary of investment markets for the three months ending 31 March 2017

Executive Summary

March 2017
Equities have rallied on better global growth and expectations for theTrump administration’s economic stimulus in the U.S. market. We worry that expectations are running ahead of reality.

Currencies: U.S. dollar has limited upside

March 2017
Interest rates still give the U.S. dollar (USD) an advantage over other developed-market currencies, but the 25% appreciation predicted as a result of the so-called border tax is not in the cards.

Asia-Pacific: power without glory

March 2017
Economies in the Asia-Pacific region are motoring on, with our expectation for full-year 2017 real GDP growth at just under 5%. That’s just a slight acceleration on 2016, as trade continues to improve and as business conditions firm. In our view, Asia-Pacific equity markets are fairly priced, while interest rates are facing upward pressures as global reflation returns.

The eurozone: Reflation is winning

March 2017
Eurozone economic growth has been strong and its financial markets have started to rebound. In the broader context of continued monetary stimulus, we think it is becoming ever more certain that reflation is winning. When markets see the same, we expect the rebound will accelerate and the gap with strong fundamentals will close.

United States: Newton’s cradle in motion

March 2017
Market psychology has swung dramatically over the last 12 months. In early 2016, investors were worried about the risks of secular stagnation and a U.S. recession, but the narrative has veered in recent months toward the awakening of animal spirits. We continue to argue that the truth falls in the middle of these two extremes — that the U.S. economy is resilient but mediocre. This view has underpinned our "buy the dips and sell the rallies" investment strategy. As the market pendulum swings closer to euphoria, a more cautious strategy seems warranted.

Investment Strategy Outlook

March 2017
Undue pessimism about global growth has given way to excessive optimism. Equity markets are overbought and a correction should create a buying opportunity. U.S. Treasuries are now fairly valued at around 2.5%, but we expect yields will be under upward pressure from rising inflation and Fed tightening.

Quantitative modelling insights: holding pattern

March 2017
Our model for U.S. equities versus U.S. fixed income, continues to show a neutral preference as of March 15, 2017, without much change since our annual outlook report.

Russell monthly update

February 2017
Here is a summary of investment markets for the month of January 2017

Russell quarterly update

January 2017
Here’s a summary of investment markets for the three months ending 31 December 2016.

Executive summary: investment tourism

December 2016
Brexit and U.S. President-elect Donald Trump make a complicated late-cycle outlook even less predictable. Investors will need to navigate stretched valuations in 2017 and a potentially more aggressive U.S. Federal Reserve (Fed) as they work out the policy direction of the new U.S. administration.

Quantitative modeling insights: holding pattern

December 2016
Our model for U.S. equities versus U.S. fixed income, which had slightly favored equities through much of 2016, shows a neutral preference as of November 25, 2016.

Currencies: will Trumponomics echo Reaganomics?

December 2016
The U.S. dollar has surged since the unexpected victory of Donald Trump in November’s U.S. presidential elections. If the greenback’s ascent continues apace, it could rival the overshoot of the dollar during Ronald Reagan’s first term as president in the 1980s. However, we don’t think such an overshoot is a likely scenario.

The eurozone: trust in fundamentals

December 2016
It is hard to stick to an investment process when financial markets seem to ignore everything it is built on. However, it is precisely in times like these that we have to remind ourselves that an investment process aims to not only identify investment opportunities, but also prevent investors from making behavioral mistakes. We believe giving up on the favorable fundamentals in the eurozone would be such a mistake. And we continue to trust they will lift eurozone financial markets.

Global Market Outlook 2017: The new abnormal

December 2016
Political uncertainty dominates the 2017 outlook as markets adjust to the new realities of President-elect Trump and Brexit.

Concentration risk and the Australian share market

October 2016
We look at why franking credits should not be the only consideration for For-Purpose organisations

The three step process to developing an ‘all weather’ financial strategy

July 2016
Developing a financial strategy that will succeed in good and bad economic environments is a challenge for all business and investment professionals. However, this challenge can be particularly acute for many For-Purpose organisations due to the long term (often perpetual) nature of their objectives and their need to balance the competing objectives of regularly drawing an income whilst preserving the capital base of their investment portfolio.

Spotlight on: Russell Investments’ equity ETFs

June 2016
At the end of May 2016, Russell Investments’ Portfolio Managers, James Harwood and Robert Moore, held a briefing on the recent ETF reconstitution. Each of the ETFs underwent some changes to ensure they maintain the correct positioning to achieve their end desired outcomes.

Below is an overview of the EQUITY component of the briefing.

Spotlight on: Russell Investments’ bond ETFs

June 2016
At the end of May 2016, Russell Investments’ Portfolio Managers, James Harwood and Robert Moore, held a briefing on the recent ETF reconstitution. Each of the ETFs underwent some changes to ensure they maintain the correct positioning to achieve their end desired outcomes.

Below is an overview of the BOND component of the briefing.

Market Update - Fed rate decision

June 2016
Steady as it goes. For now

In the end there really wasn’t much suspense. U.S. Federal Reserve chair Janet Yellen had made it pretty clear in a speech she gave on 6 June that the Fed intended to keep interest rates steady at its June Open Market Committee (FOMC) meeting. And that’s exactly what happened. So for now, the U.S. federal funds rate remains unchanged at between 25 to 50 basis points.

Executive Summary

May 2016
The 2016 Russell Investments/ASX Long-term Investing Report underscores the danger of Australian investors relying on local asset classes, and traditional ‘do-it- yourself’ approaches, to achieve their long-term investment goals.

Federal Budget 2016 – Superannuation update

May 2016
We provide a summary of how the announcements in the 2016 Federal Budget will impact on superannuation

Investment strategy outlook: The Fed Awakens

January 2016
Investment strategy outlook: The Fed Awakens

Executive summary: Outlook 2016 - Curb your enthusiasm

January 2016
In our 2015 Annual Global Market Outlook we talked about how the bar for generating investment returns was rising as a result of stretched equity valuations, low bond yields and narrow credit spreads. This reality hit home in 2015. Global equities and fixed income barely posted positive returns for the year and anything related to emerging markets (EM) fared worse. Looking ahead to 2016, the bar keeps rising, and we believe it will likely be another year of limited upside potential for investment returns.
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