- Global multi-asset manager begins multi-phase enhancement of core plus fixed income pool.
- New absolute return fund allows greater flexibility and complements traditional approaches.
TORONTO, July 22, 2014 /CNW/ - Russell Investments Canada Limited (Russell Canada ) is helping investors further diversify their fixed income portfolios as they try to manage growing retirement investment and income risks, with the Russell Global Unconstrained Bond Pool (Fund). The Fund builds on Russell's current fixed income offering to help clients pursue desired investment outcomes by building a more diversified fixed income approach. This enhanced Fund (formerly the Russell Core Plus Fixed Income Pool) includes a new sub-adviser, an expanded investment mandate and a new set of Russell positioning strategies. This is the first in a planned multi-phase enhancement by Russell Canada.
"Canadian investors and their financial advisors require a broader set of fixed income investment tools to prepare their portfolios for a number of possible scenarios," said David Feather, president and chief executive officer, Russell Investments Canada. "Fixed income approaches which solely aim to replicate traditional benchmark exposures should be complemented by dynamic and active approaches."
Russell Canada believes an "unconstrained" approach can benefit Canadian investors and financial advisors looking to diversify their fixed income portfolios. The Russell Global Unconstrained Bond Pool is an absolute return strategy managed without traditional fixed income benchmark constraints, seeking to capitalize on a wider range of global opportunities compared to traditional fixed income products.
The firm's chief investment officer Greg Nott will oversee the Fund as portfolio manager, supported by portfolio analyst Peter Dohnal and Russell's global fixed income investment team.
According to Nott, "Many traditional fixed income funds tend to closely mirror fixed income indices, which can both limit opportunity and increase risk. To address this challenge, Russell has created an unconstrained fixed-income investment solution that that provides a more global and flexible approach. We will manage the new Fund in a highly flexible and opportunistic manner, bringing all the resources of Russell to bear for our clients."
East Coast Funds Management Ltd has been added as a sub-adviser, with the mandate to manage an absolute return credit portfolio. In addition, the Fund's overarching mandate has been broadened, allowing Nott and his team to diversify among a wider range of fixed income sectors, durations and markets beyond Canada. This new unconstrained mandate offers the flexibility to pursue income globally using an actively managed absolute return focus.
As an additional enhancement, the Fund's portfolio managers will now be able to use Russell positioning strategies strategically and tactically in conjunction with the Fund's sub-adviser strategies to seek total return and manage portfolio risk. These include using Russell Conscious Currency positioning strategies to take currency views. These strategies reflect Russell's approach to managing currency which suggests that investors measure and model currency as a separate set of exposures unique to the currency markets. Other positioning strategies may include direct investment capabilities such as overlays, smart beta strategies and custom quantitative strategies.
The Russell Unconstrained Bond Pool is available for purchase in Series A, Series B, Series E, and Series F (fee-based). For more information on the Russell Global Unconstrained Bond Pool, please contact Russell Canada at 1-888-509-1792.
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$286.7 billion* in assets under management (as of 3/31/2014) 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$5.2 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.
Indexes are unmanaged and cannot be invested in directly.
Russell Investments and the Russell Investments logo are registered trademarks of Frank Russell Company, used under license by Russell Investments Canada Limited.
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.
Copyright © Russell Investments Canada Limited 2014. All rights reserved.
SOURCE: Russell Investments Canada Limited
For further information: Catherine Winchell, 416-640-6899; Beja Rodeck Communications, 905.885.5945