Russell Investments Canada is launching a short-term income pool and class, designed for investors looking for low-volatility, fixed-income securities.
“Our Russell Short-Term Income Pool is suitable for investors who are concerned about ongoing volatility and future interest-rate increases,” says David Feather, president and CEO of Russell Investments Canada. “It also offers a higher-yielding alternative to money market funds.”
It will invest in a broad range of Canadian investment-grade securities, including domestic short-term corporate bonds, floating-rate notes, asset-backed securities, mortgage-backed securities, as well as investment-grade credit products with maturities of up to five years.
Investors will also gain access to foreign fixed-income securities on a currency-hedged basis. The pool will be sub-advised by three managers: Phillips, Hager & North Investment Management, AEGON Capital Management, and Canso Investment Counsel.
The Short-Term Income Class offers investors tax efficiency in their non-registered investments. Its U.S. Dollar Hedged Series option will provide them with a return in U.S. dollars, which will be highly correlated to the fund’s performance in Canadian-dollar terms by reducing the effect of exchange rate fluctuations.
Investors can either invest in the pool or class individually, or access them through a Russell multi-asset portfolio solution in either the LifePoints or Sovereign Investment Programs.
The pool will be included in: the Russell LifePoints Fixed Income Portfolio and class with a 20% allocation; the Russell LifePoints Conservative Income Portfolio and class with a 15% allocation; and the Russell LifePoints Balanced Income Portfolio and class with a 10% allocation.
Within the Sovereign Investment Program, it will be included in the Russell Income Essentials Portfolio and class with a 10% allocation.