TORONTO, Feb. 14, 2012 /CNW/ - Russell Investments Canada Limited (Russell) announces the launch of the Russell Global High Income Bond Pool, designed for investors looking for global fixed-income diversification.
The Russell Global High Income Bond Pool is a global fixed-income pool that currently targets 60 percent high-yield bonds and 40 percent emerging markets debt.
"In this market environment, investors are seeking higher yields, greater diversification and increased return potential," said David Feather, President and Chief Executive Officer, Russell Investments Canada. "Russell aims to provide investors with timely investment solutions, and the Russell Global High Income Bond Pool may be an attractive option, either as a stand-alone investment solution or as a building block within a well-diversified portfolio."
With government securities at historically low interest rates, adding an exposure to high-yield bonds and emerging markets debt may offer investors the potential for higher returns without significantly increasing the risk of their overall portfolio.
"Many companies have emerged from the turbulent market conditions of recent years with solid corporate balance sheets and strong cash flow. Default rates have fallen and are expected to remain low. Additionally, emerging markets on average have lower debt-to-Gross Domestic Product levels than developed countries, giving them the flexibility to provide stimulus if global events warrant" said Greg Nott, Chief Investment Officer, Russell Investments Canada. "Our new Russell Global High Income Pool provides investors with access to sub-advisers skilled at identifying these new sources of return potential."
With more than 40 years of experience researching investment managers across the globe, Russell Investments has combined a comprehensive group of specialist sub-advisers to manage this Pool:
DDJ Capital Management, LLC -U.S. High Yield Bond Specialist : Specializes in identifying investment opportunities in high-yield bonds and in the debt of companies that are experiencing financial duress, but with what DDJ believes are competent management teams, sustainable market positions and/or adequate asset values.
Logan Circle Partners, LLC - Global High Yield Bond Specialist : A high-yield specialist that focuses on issue selection to potentially add value. Logan Circle has a strong focus on risk control management and monitors deviations from benchmark weights.
Stone Harbor Investment Partners LP - Emerging Markets Debt Specialist : Focuses on emerging markets. The firm is well placed to add value in all areas of emerging markets debt, including local currency and corporates. Stone Harbor specializes in combining fundamental credit skills with modern quantitative allocation techniques.
Investors can invest in the individual Pool or access it as part of our Russell Income Essentials Portfolio, Russell Diversified Monthly Income Portfolio, most of the Russell model portfolios and Russell LifePoints Portfolios. It could also be included in the Russell Enhanced Canadian Growth & Income Portfolio on a tactical basis.
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 35 countries. The firm has $143 billion in assets under management (as of 12/31/11) in its mutual funds, retirement products, and institutional funds.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. 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 2012. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments.
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