TORONTO, Aug. 3 /CNW/ - Russell Managed Yield Class has added new distribution options designed to increase income, but not taxes. Investors now have annual distribution options of 3% or 5% that are paid monthly. The distributions are made up of return of capital, rather than interest income, which can provide investors with reliable, tax-efficient monthly income. Significant tax savings can be found through the distribution options of Russell Managed Yield Class versus a traditional fixed income fund.
"Fixed income investments provide interest income that is taxed at nearly twice the rate of capital gains," explains Keith Pangretitsch, Director of National Sales at Russell Investments Canada Limited.
"Russell Managed Yield Class solves this problem by distributing tax efficient income. As a result, you can increase your cash-flow with these new distribution options, not your tax bill."
According to research conducted by Russell, investors can keep up to 87% more of their return on an after-tax basis by using the Russell Managed Yield Class, compared to the same fixed income portfolio in a traditional mutual fund trust structure.
"The Russell Managed Yield Class' structure offers investors the opportunity for growth and income potential, plus tax-efficiency with your income planning," says Pangretitsch.
"Working with an advisor, investors can use the Russell Managed Yield Class to develop a tax-efficient, long term strategy that can be applied to many stages of life."
The Russell Managed Yield Class is distinct from most corporate class structures in that its assets are sub-advised by third-party fixed income managers through its reference fund the Russell Canadian Fixed Income Fund and offers a multi-manager approach.
For more information about Russell Managed Yield Class and the new 3% and 5% distribution options, please call Thien Huynh at 416-640-2529
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. The firm has $140 billion in assets under management (as of 06/30/10) in its mutual funds, retirement products, and institutional funds.
Russell Canada was recently named the No.1 fastest growing money manager in Benefit Canada's 2010 Top 40 Money Managers Report. For more information about how Russell helps to improve financial security for people, visit us at www.russell.com/ca.
SOURCE Russell Investments Canada Limited
For further information: For further information: Thien Huynh, 416-640-2529, For real-time news updates, follow @Russell_News on Twitter