Product updates and commentary in response to key market developments.
Performance review - 4th Quarter Update
The Fund added to its positive year-to-date performance.
- The allocation to global equities remained rewarded and suited the risk-on market environment.
- Unlike the previous quarter, the allocation to Bluebay’s convertible bond strategy was positive.
- Allocations to global high yield and unconstrained fixed income were positive.
- An allocation to Emerging Markets added value.
However,
- Unhedged currency exposure detracted amid sterling strength. Exposure to the Japanese yen was unrewarded as sterling appreciated 8.6% on a total return basis.
- Exposure to duration was a slight negative as bond yields increased over the quarter.
- The allocations to local currency emerging market debt and infrastructure detracted.
Performance (%)
Average annualised returns as of 31/12/19
| RUSSELL INVESTMENTS MULTI-ASSET GROWTH STRATEGY GBP PERFORMANCE (%) | 1 month | 3 months | Year to date | 12 months | 3 years | 5 years | Since inception |
|---|---|---|---|---|---|---|---|
| Return Gross of Mgmt Fee A |
1.1 | 2.3 | 12.8 | 12.8 | 4.9 | 5.3 | 6.4 |
| Return Net of Mgmt Fee | 1.0 | 2.1 | 11.9 | 11.9 | 4.1 | 4.4 | 5.5 |
| RPI +4% Benchmark | 0.5 | 0.8 | 6.3 | 6.3 | 7.2 | 6.6 | 7.1 |
Source: Confluence. Data as at 31st December 2019
Discrete rolling 12-month performance (%)
Average annualised returns as of 31/12/19
| Returns shown in GBP | Q4 2014 - Q4 2015 | Q4 2015 - Q4 2016 | Q4 2016 - Q4 2017 | Q4 2017 - Q4 2018 | Q4 2018 - Q4 2019 |
|---|---|---|---|---|---|
| Return Gross of Mgmt Fee (0.80) | 2.4 | 9.3 | 7.8 | -5.0 | 12.8 |
| Return Net of Mgmt Fee | 1.6 | 8.5 | 7.0 | -5.8 | 11.9 |
| RPI +4% | 5.1 | 6.3 | 8.0 | 7.3 | 6.3 |
Source: Confluence. Data as at 31st December 2019
"The Fund performed well over the fourth quarter, largely driven by the allocation to global equities."
Portfolio review
Asset allocation chart
Source: Russell Investments. Data as at 31st December 2019. Inception date: 8 December 2009.
Over the fourth quarter, we made the following portfolio changes:
- Early in the quarter, we added to our equity allocation as our belief around a cyclical economic upswing grew. However, to keep risks balanced, we also increased our exposure to US Treasuries.
- We made the same trade in November – adding to UK equities where we saw good value and a catalyst for a re-rating if the Conservatives gained a majority in the election.
The Fund remains well balanced between growth orientated asset classes like equities and more defensive allocations, particularly alternative forms of fixed income. We use enhanced diversification and overlay strategies designed to mitigate downside during material drawdowns.
Disclaimer:
FOR PROFESSIONAL CLIENTS ONLY
Unless otherwise specified, Russell Investments is the source of all data. All information contained in this material is current at the time of issue and, to the best of our knowledge, accurate. Any opinion expressed is that of Russell Investments, is not a statement of fact, is subject to change and does not constitute investment advice.
The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
Any past performance figures are not necessarily a guide to future performance.
Potential investors in Emerging Markets should be aware that investment in these markets can involve a higher degree of risk. Issued by Russell Investments Limited.
Some investments/bonds may not be liquid and therefore may not be sold instantly. If these investments must be sold on short notice, you might suffer a loss.
Company No. 02086230. Registered in England and Wales with registered office at: Rex House, 10 Regent Street, London SW1Y 4PE. Telephone 020 7024 6000. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.
The information on this website is only intended for use by professional clients, regulated financial advisers and intermediaries who are knowledgeable and experienced in the financial services market and in investment products of this nature. If you are a retail or individual investor then please leave this website immediately and consult your financial adviser.
You should not use this website unless you understand its nature and the extent of your exposure to risk. You should also be satisfied that the website and investments are suitable for your client in light of their circumstances and financial position.
The information contained on this website is for information purposes only and you should not take it as constituting an offer, solicitation, inducement, commitment or invitation to subscribe for or to purchase, sell or hold any interest in any of the investments mentioned herein.
This website is not intended for distribution or use by anyone in any jurisdiction in which such distribution or use would be prohibited. Nothing on this website or in the materials referred to therein constitutes, or is intended to constitute, financial, tax, legal or other advice.
The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested. Any past performance figures are not necessarily a guide to future performance.
The website may contain forward-looking statements, which are based on a number of assumptions regarding present and future business strategies, which may or may not prove to be correct. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance.
Issued by Russell Investments Limited. Company No. 02086230 and Russell Investments Implementation Services Limited Company No. 3049880. Registered in England and Wales with registered office at: Rex House, 10 Regent Street, London SW1Y 4PE. Telephone +44 (0)20 7024 6000. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.
All reasonable care has been taken by us to ensure that the information contained on this website is accurate at the time of publication. However, we accept no responsibility for the accuracy, adequacy or completeness of the information and materials contained on this website and expressly disclaim liability for errors or omissions in such information and materials. We and our respective affiliates do not have any obligation to update the information contained in this website and reserve the right to change these terms and conditions at any time, without notice.
We will not regard you or any person who accesses this website as our client in relation to any of the investment products or services detailed therein, unless expressly agreed.