Looking at the performance table, you will see that most investment options have delivered a negative return over the quarter. To put the numbers into perspective, as we discuss below, investors need to remember that negative returns and market uncertainty are a regular feature of the market landscape.
September 2008 is likely to go down as a momentous month in recent financial market history. The credit crisis continued apace with the effective nationalisation of US mortgage lenders Fannie Mae and Freddie Mac, the bankruptcy of Lehman Brothers, the emergency takeover of Merrill Lynch by Bank of America, the US Government’s bailout of insurance giant American International Group and the global effort to address the fundamental issues facing our markets.
The global uncertainty fed through to the Australian market with high levels of volatility and negative returns during the quarter. As dramatic as the last month has been, we need to remember that periods of volatility have occurred at a regular 6-7 year frequency over the last twenty years. Responding emotionally to the drama is the greatest danger for long-term investors – remaining disciplined and sticking with your long-term investment objectives will ensure that your portfolios are well positioned to perform when markets rebound.
| Russell portfolios | Quarter | 1yr (p.a) |
3yrs | 5yrs | Inception date * | Since inception (p.a) |
| TARGET DATE PORTFOLIOS† | ||||||
| Russell 2010 | 0.0% | -5.2% | ‡ | ‡ | 01/10/05 | 2.9% |
| Russell 2020 | -0.8% | -8.8% | ‡ | ‡ | 01/10/05 | 1.8% |
| Russell 2030 | -1.6% | -12.9% | ‡ | ‡ | 01/10/05 | 2.0% |
| Russell 2040 | -2.8% | -16.5% | ‡ | ‡ | 01/10/05 | 1.8% |
| DIVERSIFIED PORTFOLIOS | ||||||
| Russell Conservative | 1.4% | -2.6% | 3.8% | 5.8% | 01/07/03 | 5.8% |
| Russell Diversified 50 | -0.5% | -7.6% | 3.4% | 6.7% | 01/07/03 | 6.7% |
| Russell Blended Balanced | -0.7% | -11.8% | 3.4% | ‡ | 01/04/05 | 5.6% |
| Russell Balanced | -1.0% | -11.9% | 3.2% | 7.7% | 01/07/03 | 7.9% |
| Russell Balanced Opportunities | -4.5% | ‡ | ‡ | ‡ | 01/07/08 | -15.9% |
| Russell Growth | -2.2% | -15.5% | 3.3% | 8.8% | 01/07/03 | 9.3% |
| Russell High Growth | -3.0% | -17.4% | 3.1% | ‡ | 01/04/05 | 5.4% |
| SECTOR PORTFOLIOS | ||||||
| Russell Australian Cash | 1.5% | 6.1% | 5.2% | 4.9% | 01/07/03 | 4.8% |
| Russell International Property Securities - $A hedged |
-8.9% | -21.0% | 1.5% | ‡ | 01/04/05 | 4.0% |
| Russell Australian Shares | -1.9% | -15.3% | 6.9% | 13.4% | 01/07/03 | 14.0% |
| Russell Australian Opportunities | -3.2% | -18.2% | 5.0% | ‡ | 01/11/04 | 8.8% |
| Russell International Shares | -0.1% | -15.6% | -0.8% | 3.0% | 01/07/03 | 3.9% |
| Russell International Shares -$A hedged |
-9.5% | -19.1% | 0.8% | ‡ | 01/11/04 | 4.6% |
| Russell Global Opportunities | -1.0% | -14.4% | 0.5% | ‡ | 01/04/05 | 2.0% |
| Russell Socially Responsible Australian Shares | -4.0% | ‡ | ‡ | ‡ | 01/07/08 | -15.2% |
*The date the investment portfolio became available. † Available in the Employer and Personal Divisions only. ‡ Investment returns are not available for this period as this portfolio has not been in place for the period specified. The returns shown are net of investment management fees and taxes on investment income. Past performance is not indicative of future performance. This performance information is provided to you by the trustee of Russell SuperSolution Master Trust, Total Risk Management Pty Ltd (AFSL 238790). |
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