New US dollar fixed income product invests in high quality Canadian
assets and offers built-in currency hedging
TORONTO, April 26 /CNW/ - Russell Investments Canada Limited (Russell) announced that it is
launching a new US Dollar Series of its Russell Managed Yield Class, a
fixed income solution that meets the needs of conservative investors
looking for a well diversified, tax efficient fixed income solution
with built in protection from the USD/CAD currency fluctuations.
"Many investors are wondering how to manage the volatility between the
Canadian and US dollars", said David Feather, President and CEO Russell
Investments Canada Limited. "With this new innovative Series, you have
the benefit of being invested in high quality Canadian assets while
minimizing the USD/CAD currency fluctuations -- something which would
be of great interest to conservative investors who have significant
assets or property interests in the US, such as "snowbirds" who want to
minimize the risk associated with movements of the USD/CAD exchange
The Russell Managed Yield Class - US Dollar Series provides investors
with access to a well diversified, tax efficient fixed income portfolio
now with a built in currency hedging strategy, to protect them from the
USD/CAD exchange rate movements. For investors seeking a US dollar
monthly income, the new Series also offers a 5% (I5) annual
distribution series, paid monthly in US dollars, using return of
capital. This is a great option for investors looking for a US dollar
monthly income stream.
"Given the significant US holdings by many Canadian investors, we
believe the Russell Managed Yield Class -US Dollar Series is a great
alternative to US GICs and High Interest Savings Accounts, which offer little return potential in this environment" says Greg Nott, Portfolio Manager Russell
Investments Canada Limited. "Your initial investment is made in US
dollars, which Russell converts into Canadian in order to purchase the
underlying securities of the fund. Russell then uses a currency hedging
strategy to protect your investment from future USD/CAD currency
The Russell Managed Yield Class -US Dollar Series offers best of breed
sub-advisers. The underlying asset exposure (to Russell Canadian Fixed Income Fund)
is sub-advised by three institutional fixed income managers, each with
their own areas of specialization: Canso Investment Counsel, Pacific
Investment Management (PIMCO) and Beutel Goodman & Company.
Russell Managed Yield Class is also available in Canadian dollar Series.
About Russell Investments
Founded in 1936, Russell Investments is a global financial services firm
that serves institutional investors, financial advisers and individuals
in more than 40 countries. The firm has C$156.5 billion in assets under
management (as of March 31, 2011) in its mutual funds, retirement
products, and institutional funds.
Russell Canada was recently named the #1 fastest growing money manager
in Benefits Canada's 2010 Top 40 Money Managers Report. For more
information about how Russell helps to improve financial security for
people, visit us at www.russell.com/ca.
Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the prospectus
Mutual funds are not guaranteed, their values change frequently and past
performance may not be repeated.
Nothing in this publication is intended to constitute legal, tax
securities or investment advice, nor an opinion regarding the
appropriateness of any investment, nor a solicitation of any type. This
is a publication of Russell Investments Canada Limited and has been
prepared solely for information purposes. It is made available on an
"as is" basis. Russell Investments Canada Limited does not make any
warranty or representation regarding the information.
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Copyright © Russell Investments 2011. All rights reserved. This material
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SOURCE Russell Investments Canada Limited
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