Global multi-asset manager taps into fixed income investment capabilities to develop a risk management tool for Canadian investors taking increasing steps to de-risk their portfolios.
TORONTO, April 8, 2014 /CNW/ - Russell Investments Canada Limited (Russell Canada) has responded to the increasing portfolio de-risking needs of Canadian institutional investors by introducing the Russell Inflation Linked Bond Fund. The Fund, which expects to invest primarily in inflation-linked bonds issued by governments of Canada, is designed to provide a stable level of interest income that is hedged against inflation.
Russell Canada has developed the Fund in response to what it believes is a critical need in the Canadian institutional market. Canadian pension plans are taking advantage of strong funding levels to reduce the risk of future liabilities, often by implementing fixed income strategies. And they are looking for a variety of fixed income investment vehicles to help achieve desired investment outcomes.
"We are able to draw on three decades of experience in Canada and tap into Russell Investments' unique set of global investment competencies and resources to anticipate and respond quickly to the needs of the Canadian investor," said David Feather, president and chief executive officer, Russell Investments Canada Limited. "The environment is changing for Canadian investors, with dynamic risk management coming to the forefront after a few years of market growth and improving funding levels. This new fund is another example of our ability to combine local insight and global capabilities to offer a unique investment tool for clients."
Russell Canada believes this new offering will be of interest to Canadian pension funds and other institutional investors applying de-risking strategies to match future liabilities. The Fund helps institutional investors address concerns about inflation risk, potentially improve funding levels and better hedge inflation risk to future retirement plan benefits. It will also be added as a portion of the allocation within the Russell Real Assets Portfolio, available to Canadian institutional and private client investors.
Russell Canada chief investment officer Greg Nott will oversee the Fund as portfolio manager while day-to-day portfolio management services will be provided by Kelly Mainelli, part of Russell Investments global fixed income team and based in the company's global headquarters in Seattle, Washington. Russell's global fixed income investment team is based around the world and collectively oversees more than C$51 billion in fixed income assets.
According to Nott, "Unlike traditional core bonds, inflation-linked bonds provide inflation-adjusted income. Even in the case of well-diversified multi-asset portfolios, unexpected inflation can impact the returns and real income investors expect to receive over time. From a strategic perspective, it is important for investors, particularly those plans with an inflation component tied to their promised benefits or spending requirements, to consider some form of direct protection against inflation. The Fund may be suitable for investors applying de-risking strategies and seeking to match their liabilities with an inflation-linked instrument to protect improved funding levels."
For more information on the Russell Inflation Linked Bond Fund, please contact Russell Canada at 1-866-737-2228.
About Russell Investments
Russell Investments (Russell) is a global asset manager and one of only a few firms that offers actively managed multi-asset portfolios and services that include advice, investments and implementation. Russell stands with institutional investors, financial advisors and individuals working with their advisors – using the firm's core capabilities that extend across capital market insights, manager research, portfolio construction, portfolio implementation and indexes to help each achieve their desired outcomes.
Russell has more than C$272.7 billion* in assets under management (as of 12/31/2013) and works with over 2,500 institutional clients, independent distribution partners and individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell has US$2.4 trillion in assets under advisement (as of 6/30/2013). 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 US$1.4 trillion in 2012 through its implementation services business. Russell also calculates approximately 700,000 benchmarks daily covering 98% of the investable market globally, including more than 80 countries and more than 10,000 securities. Approximately US$4.1 trillion in assets are benchmarked to the Russell Indexes.
Headquartered in Seattle, Washington, Russell operates globally, including through its offices in Seattle, New York, London, Paris, Amsterdam, Sydney, Melbourne, Auckland, Singapore, Seoul, Tokyo, Beijing, Toronto, Chicago, San Diego, Milwaukee and Edinburgh. For more information about how Russell helps to improve financial security for people, visit www.russell.com or follow @Russell_News.
*includes more than US$74 billion of derivative overlay assets under management not included prior to June 30, 2013
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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Russell Investments Canada Limited is a wholly owned subsidiary of Frank Russell Company and was established in 1985. Russell Investments Canada Limited and its affiliates, including Frank Russell Company, are collectively known as Russell Investments.
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SOURCE: Russell Investments Canada Limited
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