TORONTO, April 6 /CNW/ - Russell Investments Canada Limited (Russell Canada) is pleased to announce that it has launched a new breed of balanced portfolio: The Russell Enhanced Canadian Growth and Income Portfolio (the Portfolio).
The Portfolio starts with an asset allocation of 60% Canadian equities and 40% fixed income, but can dynamically adapt to changing market conditions using Russell's Enhanced Asset Allocation (EAA) model - which allows the portfolio's weightings to be adjusted and outline a path to potentially higher returns, based on the market insight of Russell's investment experts.
"Russell has a strong heritage in portfolio management and investment research and EAA is an evolutionary step in our approach to asset allocation. It retains the long-term benefit of strategic asset allocation, fits into the existing portfolio structure and utilizes robust risk management. EAA has already been well-received by institutional clients globally and we are very excited to now deliver this unique offering to our retail clients in the Russell Enhanced Canadian Growth and Income Portfolio," says Russell Canada portfolio manager Greg Nott.
"The EAA model is not there to dominate the overall Portfolio. Rather, it is designed to seek improved returns for clients by purposely tilting the Portfolio to take advantage of Russell's insights into the current relative valuation of asset classes, while still managing risk and liquidity. The Portfolio's use of EAA essentially takes advantage of Russell's investment expertise across the globe by tilting portfolios to capture the views and forecasts of asset class returns. For instance, the portfolio could tilt the equity/ bond balance or the Canadian equity/ non-Canadian equity balance if a significant opportunity to add value is identified."
Although EAA is a new investment model in Canada, it is an asset allocation innovation that has been researched and developed at Russell for over 15 years. Russell has an extensive and successful history of combining capital market insights with portfolio management decisions.
Investors can choose a non-distribution option or select a 5%, 6%, or 7% monthly distribution. The Portfolio features allocations to the Russell Fixed Income Pool, the Russell Core Plus Fixed Income Pool, the Russell Canadian Dividend Pool and the Russell Canadian Equity Pool (with potential foreign equity exposure up to a maximum of 30%). It is also available in a Corporate Class series. Similar to all Russell products, the Portfolio features best-of-breed sub-advisers. Russell selects and continually monitors leading global money managers to sub-advise the underlying assets within the Portfolio.
For more information about the new Portfolio or Russell's EAA model, please visit: http://www.russell.com/ca/Investor_Services/Sovereign_investment_Program/ECGIP.asp
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. Over the course of its history, Russell's innovations have come to define many of the practices that are standard in the investment world today, and have earned the company a reputation for excellence and leadership.
Through a unique combination of wide-ranging and interlinked businesses, Russell delivers financial products, services and advice. A pioneer, Russell began its strategic pension fund consulting business in 1969 and today is trusted by many well-known worldwide institutions for investment advice. Russell's global consulting assets total approximately $813 billion CDN. The firm has $184.9 billion CDN in assets under management (as of 12/31/09) in its mutual funds, retirement products, and institutional funds, and is well recognized for its depth of research and quality of manager selection. Russell offers a comprehensive range of implementation services that helps institutional clients maximize their assets. The Russell Indexes calculate over 50,000 benchmarks daily covering 65 countries and more than 10,000 securities.
Russell is headquartered in Tacoma, Washington, USA with offices in Amsterdam, Auckland, Chicago, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Seoul, Singapore, Sydney, Tokyo and Toronto. Russell Investments Canada Limited is a wholly-owned subsidiary of Frank Russell Company. For more information about how Russell helps to improve financial security for people, visit us at www.russell.com/ca
SOURCE RUSSELL INVESTMENT GROUP
For further information: For further information: Katita Stark, (416) 929-9100