I was quite excited to see the launch of the new Russell Select Australian Corporate Bond fund over the past few days. I thought the ability to have a diversified Australian bond fund that has the ability to provide a bit of credit risk for a more diversified portfolio would be great.
Unfortunately when I looked at the portfolio the holdings were the following…
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COMMONWEALTH BANK AUST …maturing 20 Feb 2014
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AUST & NZ BANKING GROUP …maturing 10 Nov 2014
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WESTPAC BANKING CORP …maturing 18 Aug 2014
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WESTPAC BANKING CORP …maturing 18 Nov 2014
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NATIONAL AUSTRALIA BANK …maturing 19 Dec 2013
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AUST & NZ BANKING GROUP …maturing 16 Jan 2014
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WESTPAC BANKING CORP …maturing 05 Mar 2014
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COMMONWEALTH BANK AUST …maturing 14 Jul 2014
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NATIONAL AUSTRALIA BANK …maturing 16 Sep 2014
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COMMONWEALTH BANK AUST …maturing 21 Jul 2015
Oh well…not too diversified…just the big 4 banks…bummer, and back to the drawing board for me…I’m afraid at this stage Russell’s should look to rename their ETF to something that reflects the underlyings a little more closely.