TORONTO, Dec. 13, 2012 /CNW/ - Russell Investments Canada Limited
(Russell) has announced the launch of the Russell Focused Canadian
Equity Pool and Class for Canadian investors who want to hold a core
equity fund with a defensive and value tilt.
"Ongoing market turmoil has many investors searching for more
stability," said David Feather, President and Chief Executive Officer,
Russell Investments Canada. "We believe this new pool will be
attractive to conservative investors who want a defensively oriented
equity fund that is expected to be less volatile than the market as a
whole. The new Russell Focused Canadian Equity Pool also gives
investors the ability to strategically diversify their portfolios by
investing in companies that offer different risk-reward characteristics
than traditional Canadian equity funds."
The new Pool will invest in a concentrated selection of between 50-70
high-quality Canadian companies.
"The companies chosen for the Pool should have strong balance sheets,
solid management and consistent earnings, and they should trade at
reasonable valuations," said Greg Nott, chief investment officer for
Russell Investments Canada. "We believe their defensive profile and
robust free cash flows should stand them in good stead during difficult
The Russell Focused Canadian Equity Class offers investors tax
efficiency in their non-registered investments.
The Pool will be sub-advised by three skilled Canadian equity managers,
each bringing complementary investment strategies.
QV Investors Inc.
Based in Calgary, Alberta, QV Investors is a fundamental value-oriented
manager that invests in companies with defensive qualities such as
enduring business models and sensible capital allocation. Its goal is
to build a diversified portfolio of some of Canada's best companies
with proven track records, competent management teams, competitive
products and services, and strong financial quality. These companies
generally achieved higher returns on equity than the average Canadian
corporation, with lower volatility than the benchmark S&P/TSX Composite
Rondeau Capital Inc.
Toronto-based Rondeau Capital Inc. emphasizes the preservation of
capital with the potential for solid, steady growth of capital over
time. Its portfolio is kept to between 20 and 40 names to help ensure
each is of high quality and is expected to have a meaningful impact on
the portfolio. At least 55% of the portfolio is in Canadian names at
Rondeau's portfolio management team is guided by their belief in the
importance of preserving capital. Its bottom-up research process aims
to focus on a company's financial stability and its management team as
well as identifying the sustainable competitive advantages of the
business with an analysis of the potential risks it faces.
CGOV Asset Management Ltd.
Toronto-based CGOV Asset Management Ltd. is a small, boutique firm that
builds concentrated portfolios with a maximum of 25 names in which it
has strong conviction.
It aims to provide an atypical approach to investment management by
building portfolios that do not look or act like other managers'
portfolios or the benchmark. It believes a high-conviction portfolio
can be built by investing in a limited number of companies that have
attractive long-term prospects in absolute and relative terms.
CGOV's portfolio attempts to be diversified across global industry
sectors with companies that it believes have a sustainable competitive
advantage, a reason for existence, a high degree of predictability, and
ample free cash flow.
Investors can invest in the individual Pool or Class, or access them
through a Russell multi-asset portfolio solution, in either the
LifePoints or Sovereign Investment Programs. The Russell Focused
Canadian Equity Pool will be included in the Russell LifePoints
Conservative Income Portfolio and Class with a 3% allocation, and the
Russell LifePoints Balanced Income Portfolio and Class with a 5%
allocation. It will be included in the Russell Income Essentials
Portfolio and Class with a 5% allocation. It will also be added to some
of the Russell model portfolios.
About Russell Investments
Russell Investments (Russell) is a global asset manager and one of only
a few firms that offer actively managed, multi-asset portfolios and
services that include advice, investments and implementation. Working
with institutional investors, financial advisors and individuals,
Russell's core capabilities extend across capital markets insights,
manager research, Indices, portfolio implementation and portfolio
Russell has about C$157 billion in assets under management (as of
9/30/12) and works with 2,400 institutional clients, more than 580
independent distribution partners and advisors, and individual
investors globally. As a consultant to some of the largest pools of
capital in the world, Russell has $2.4 trillion in assets under
advisement (as of 12/31/11). It has four decades of experience
researching and selecting investment managers and meets annually with
more than 2,200 managers around the world. Russell traded more than
$1.5 trillion in 2011 through its implementation services business.
Russell calculates more than 80,000 benchmarks daily covering 98
percent of the investable market globally, 85 countries and more than
10,000 securities. Approximately $3.9 trillion in assets are
benchmarked to the Russell Indices.
Headquartered in Seattle, Washington, USA, Russell and has associates
located in offices around the world including Amsterdam, Auckland,
Beijing, Chicago, Dubai, Frankfurt, London, Melbourne, Milan, New York,
Paris, San Francisco, Seoul, Singapore, Sydney, Tokyo and Toronto. For
more information about how Russell helps to improve financial security
for people, visit www.russell.com or follow us @Russell_News.
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Canada Limited does not make any warranty or representation regarding
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SOURCE: Russell Investments Canada Limited
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