Russell Investments Canada Limited has introduced 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.
The firm developed the fund in response to a 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 income investing strategies. And they’re looking for a variety of fixed income investment vehicles to help achieve desired investment outcomes.
“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,” says David Feather, president and chief executive officer, Russell Investments Canada Limited. “This new fund is another example of our ability to combine local insight and global capabilities to offer a unique investment tool for clients.”
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.