Learning Center
Plans & pricing Sign in
Sign Out

Fund Profile


Fund Profile
An in-depth look at Russell Sector Funds

March 2010

                                                                                                                Fund breakdown

Russell Global
Opportunities Fund
The Russell global opportunities Fund selects managers                                                          Axiom
with global mandates who invest in the major developed                                                          T. Rowe Price
markets of the world. The Fund has exposure to small                                                            MFS
caps and is broadly diversified to complement exposure                                                          Arrowstreet
to international sharemarkets.                                                                                  Harris
The Russell approach                                    Global investment strategy
The Russell global opportunities Fund                   The managers selected to form part of the                “The managers within
(the Fund) employs a multi-style, multi-                Fund all have global mandates. They invest                the Fund take more
manager approach. It is broadly diversified             across the global sharemarkets aiming                     aggressive positions
and its global investment brief can be a                to identify the companies that will perform               than many traditional
valuable complement to an investor’s core               best in each industry, irrespective of their              products, and their
exposure to international sharemarkets.                 domicile. The Fund invests in the major                   global focus provides
                                                        developed markets of the world but will                   greater scope for
Fund objective                                          also invest opportunistically in small caps               opportunities than
To aim to significantly outperform the                  and emerging market securities to enhance                 managers with a US
Fund’s benchmark, before costs and tax,                 returns.                                                  or regional focus.”
over the long term by providing exposure
to a diversified portfolio of predominantly                                                                       Phil Hoffman
                                                                                                                  PoRTFoLIo mANAgeR
international shares.                                                                                             RUSSeLL INVeSTmeNTS

Quick overview
Inception: January 2005
Benchmark: MSCI World Net Dividend Reinvested Accumulation Index
AUM (AUD): $1,187.8 million (as at 28/02/2010)

For more information: NSW/ACT: 02 9229 5111 VIC/ TAS: 03 9270 8111 QLD/ NT: 1300 550 924 SA/ WA: 1300 761 996
Fund Profile

Russell Global
Opportunities Fund
global mandates are not entirely a new           Fund design                                             use of portfolio controls provides
phenomenon but the depth of talent               Russell draws from its list of hire-ranked              investors with access to aggressive,
in this area has, until recently, been           global managers to pick using a variety                 return seeking managers within a risk
inadequate to sustain a sophisticated            of different styles and approaches to                   controlled environment.
multi-manager strategy. over the                 ensure good diversification. Russell
past few years, we have found that               gives each manager specific risk
managers in the global shares field              controls at different levels, including
have evolved and strengthened                    country, sector, capitalisation, number
considerably. and the opportunity set            of stocks held in the portfolio and
of skilled managers has broadened                style tilts, based on their individual
considerably.                                    styles and strengths. We believe this

  ”While a regional manager can benefit from knowing a
 specific market well, the global manager benefits from its
    ability to invest in the best companies worldwide.”

Global managers differ from                        Russell Global Opportunities Fund manager structure
regional managers
The way global managers seek
to produce above benchmark
performance is subtly different
from the way it is done by regional                                                    12.5%
managers, which appear in many                                                          Harris
traditional international share funds.                                                Associates                27.5%
                                                          Capital Size

For example, regional managers                                                                                          10%
are restricted to investing only in                                                                             MFS
companies within their own markets,
regardless of whether they happen                                                             20%
to represent the best opportunities
                                                                                          Arrowstreet                               20%
in that industry on a global basis.
By contrast, global managers only                                          10%
                                                                                                                                T. Rowe Price
look to own the best companies on a                      Small           Tradewinds
global basis. Portfolios are naturally
by construction more concentrated in                                     Value                          Style                       Growth
global ‘best ideas’, with the prospect of
higher excess returns than a regionally
constructed approach.

For more information: NSW/ACT: 02 9229 5111 VIC/ TAS: 03 9270 8111 QLD/ NT: 1300 550 924 SA/ WA: 1300 761 996
  Fund Profile

  Russell Global
  Opportunities Fund
  Current structure                                                Harris Associates is a quality manager
  The Fund is made up of six managers:                             looking for undervalued companies
                                                                   that are of above-average quality with
  Axiom uses a growth style, investing
                                                                   good prospect of recovery.
  in high quality, dynamic growth
  companies with accelerating                                      Arrowstreet is a quantitative specialist
  fundamental momentum.                                            that aims to exploit behavioural and
                                                                   informational inefficiencies across
  T. Rowe Price looks to own strong
                                                                   global markets through the application
  franchises with above-average,
                                                                   of sophisticated computer-based
  medium-term growth prospects.
  MFS focuses on high quality large cap
                                                                   Tradewinds looks for companies that
  companies with sustainable growth,
                                                                   have become severely undervalued
  high free cash flow generation and
                                                                   due to market misperceptions,
  attractive valuations.
                                                                   overreactions or investors’ fixation on
                                                                   short-term results.

Issued by Russell Investment management Ltd ABN 53 068 338 974, AFS Licence 247185 (“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. Any potential
investor should consider the latest Product Disclosure Statement (“PDS”) in deciding whether to acquire, or to continue to hold, an investment in any Russell product. The PDS can be obtained
by visiting or by phoning (02) 9229 5111. RIm is part of Russell Investments (“Russell”). Russell 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, Russell
or its associates, officers or employees may buy or sell the financial products as principal or agent. R_PRo_Fnd_globalopp_V1F_1003 mKT/1578/0108

To top